RLPC-Pricing seen on BHP’s $45 billion loan: sources

LONDON (BestGrowthStock) – BHP Billiton’s $45 billion loan backing its hostile bid for Canada’s Potash is expected to be priced lower than the last jumbo European acquisition loan in 2008, bankers close to the deal said.

The price of A+/A1 rated BHP Billiton’s loan could come out at 100-140 bps for the longer-dated facilities, and lower for the shorter-dated facility, the bankers said. That compares with the 100-175 bps for BBB- rated ABInBev’s $45 billion financing two years ago.

BHP is expected to reveal the pricing on its loan later on Friday in a filing to the U.S. Securities and Exchange Commission, which will outline the terms of its offer.

Meanwhile Potash Corp is seeking a buyer willing to top BHP Billiton’s $39 billion offer for the world’s largest fertilizer firm after shareholders balked at a bid they considered too cheap.

BHP’s jumbo financing is the European loan market’s biggest deal since 2008 when Belgian brewing giant ABInBev took a $45 billion loan to finance its acquisition of Anheuser Busch.

The six arranging banks on BHP’s deal have approached relationship banks for up to $2.5 billion each in a wider syndication, bankers said on Thursday.

The loan comprises a $25 billion, 364-day bridge loan to bond issues, a $10 billion, three-year term loan, a $5 billion three-year revolving credit facility, and a $5 billion, four-year revolving credit facility. The one-year term loan can be extended for a further year.

The loan was unequally underwritten by Banco Santander, Barclays Capital, BNP Paribas, JP Morgan and Royal Bank of Scotland. TD Securities is acting as mandated lead arranger and bookrunner on a take and hold commitment.

(Reporting by Alasdair Reilly & Tessa Walsh; Editing by Erica Billingham)

RLPC-Pricing seen on BHP’s $45 billion loan: sources