Noble Group Ltd. (NOBL) is offering to pay an all-in fee just short of 300 basis points more than the London interbank offered rate on a three-year tranche of a $1.5 billion loan, said three people familiar with the matter.
Asia’s biggest listed commodities trader by sales would pay close to 200 basis points on a one-year portion of the loan, the people said, asking not to be identified because the details are private. The company is asking banks that want to participate at a lead-arranger level to commit at least $75 million to the facility, according to the people.
Noble sent out terms last week and requested responses from banks by the end of this week, targeting to start marketing the facility in general syndication around March 21, the people said. Some banks have asked for an extension on the deadline in order to have more time to process internal credit approvals, according to the people.
The loan is expected to be split 40 percent into a one-year maturity and 60 percent into a part that matures in three years, another person familiar with the matter said yesterday.
The loan will refinance an $877.4 million facility, which is part of $1.93 billion in revolving credit and term loans originally signed in 2007 and amended two years later, one of the people said. The funds will also help refinance $1.05 billion and 244.4 million euros of loans which are part of revolving credit facilities signed last year, the person said.
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