Bloomberg News

Glencore Said to Set Terms for $12 Billion of Loan Refinancing

March 29, 2012

Glencore International Plc, (GLEN) the commodities trader seeking to acquire Xstrata Plc (XTA), set terms for loans to refinance about $12 billion of credit lines, according to two people with knowledge of the matter.

The company is offering to pay interest of 125 basis points more than the London interbank offered rate for a new $3.5 billion revolving credit maturing in 2013. An interest margin of 175 basis points is being offered to extend an existing $8.34 billion facility by one year to 2015, said the people, who declined to be identified because the terms are private.

ABN Amro Bank NV, Citigroup Inc., Lloyds Banking Group, Royal Bank of Scotland Group Plc, and Standard Chartered Plc are managing the refinancing, according to data compiled by Bloomberg.

The arrangers are offering other lenders a commitment fee ranging from 45 to 50 basis points for participating in the deal, the people said. A basis point is 0.01 percentage point.

Simon Buerk, a spokesman for the Baar, Switzerland-based company declined to comment.

The company’s existing $3.5 billion revolving credit lines due in May pay an interest margin of 110 basis points, according to data compiled by Bloomberg.

To contact the reporter on this story: Patricia Kuo in London at pkuo2@bloomberg.net

To contact the editor responsible for this story: Faris Khan at fkhan33@bloomberg.net


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