RLPC-Daimler launches loan refinancing
LONDON Aug 28 (Reuters) - German car maker Daimler has launched syndication of a loan to refinance and increase its existing 7 billion euro ($9.34 billion) credit line, which was due to mature in October 2015, banking sources said on Wednesday.
The financing, which is not intended to be drawn, acts primarily as a back-up for commercial paper drawings.
The new self-arranged facility is being coordinated by BNP Paribas, Deutsche Bank and HSBC, the sources said.
Daimler declined to comment.
Low deal flow has put pressure on loan pricing as banks bid aggressively on deals to win loan business, encouraging highly rated European borrowers to refinance early to secure future liquidity at cheap pricing levels.
A-/A3 rated Daimler's refinancing will pay around 27.5 basis points (bps) over EURIBOR, sources said, a significant reduction on the 60 bps it initially paid on its existing deal.
Daimler's existing facility signed in October 2010 via a group of 34 banks from Europe, America and Asia.
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