RLPC-UPDATE 1-Porsche pushes to agree 8.5 bln eur loan-bankers

* Loan cut from 10.5 bln eur with VW deal - bankers

* Porsche wants deal before Nov. 11 board meet - bankers

* Refinancing timing driven by the merger process - banker (Adds details)

By Zaida Espana and Tessa Walsh

LONDON, Nov 6 (Reuters) - German carmaker Porsche SE (PSHG_p.DE) is pushing to agree an 8.5 billion euro ($12.6 billion) loan by Nov. 10, two bankers close to the deal said on Friday.

The loan has been reduced from an earlier figure of 10.5 billion euros using proceeds of the planned sale of 49.9 percent of its sportscar making unit Porsche AG to Volkswagen AG (VOWG.DE), the two bankers said. [ID:nLD542863]

Porsche has given its bankers a tight deadline to respond by Nov.10, both bankers said, and is aiming to sign the loan agreement by Nov.16, the first banker said.

Nobody at Porsche could immediately be reached for comment.

Porsche is seeking an agreement from its banks before a board meeting on Nov. 11, which is a key date for its planned merger with Volkswagen, the two bankers said.

Volkswagen's board cannot agree the purchase without the loan financing, which in turn cannot go ahead unless the purchase is ratified, the first banker said.

The speed of the refinancing is also being driven by the merger process, specifically the imminent expiry of Porsche options over Volkswagen shares, he added.

The 8.5 billion euro loan, which is being led by structuring banks Citigroup, Deutsche Bank and UBS, will reduce Porsche's borrowing costs and extend the maturity of its debt by two to three years.

Porsche was originally trying to amend the terms of an earlier 10.5 billion euro loan to accomodate its merger with Volkswagen, but has instead launched a new 8.5 billion euro loan.

"Once again they are making life difficult for themselves," the first banker said regarding the timetable, adding that banks are likely to recommit to the loan, but are unhappy about the schedule.

LOAN TERMS

The new 8.5 billion euro loan consists of a 2.5 billion euro term loan that matures in June 2011 and a 4.5 billion euro term loan maturing in December 2011, the two bankers said.