Tags: Nestle | loans | refinance | euros

Nestle Said to Complete 10 Billion Euros of Loans to Refinance

Monday, 30 Sep 2013 08:06 AM

Nestle SA, the world’s largest food company, plans to sign 10 billion euros ($13.5 billion) of loans today to replace existing credit lines, according to a person with knowledge of the matter.

The maker of Nescafe coffee is arranging two 5 billion-euro revolving credit facilities maturing in one and five years, said the person, who asked not to be identified because the details are private. The debt will refinance a one-year loan maturing next month and a five-year credit line expiring in 2015, according to data compiled by Bloomberg.

Nestle spokesman Philippe Aeschlimann referred questions about the status of the loans to Citigroup Inc., which is helping to coordinate both transactions. Officials at the bank, who asked not to be named because the terms are private, declined to comment on the financing.

The Vevey, Switzerland-based company will pay interest at 10 basis points, or 0.1 percentage point, more than benchmark lending rates on the one-year loan and 12.5 basis points on the five-year debt, according to preliminary data compiled by Bloomberg. The loans pay commitment fees of one basis point and 3.75 basis points respectively.

The loans are divided into 1.8 billion-euro and $4.3 billion-equivalent portions, the person said. A revolving credit facility is a type of debt where money can be borrowed again once it’s repaid.

© Copyright 2017 Bloomberg News. All rights reserved.

 
1Like our page
2Share
InvestingAnalysis
Nestle SA, the world's largest food company, plans to sign 10 billion euros ($13.5 billion) of loans today to replace existing credit lines, according to a person with knowledge of the matter.
Nestle,loans,refinance,euros
217
2013-06-30
Monday, 30 Sep 2013 08:06 AM
Newsmax Inc.
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved