RLPC-Schaeffler's Conti bid loan totals 16.1 bln euros-source
LONDON, Aug 5 (Reuters) - The loan financing backing German ball-bearing maker Schaeffler's bid for Continental AG (CONG.DE) totals 16.1 billion euros ($24.95 billion), a banking source said on Tuesday.
The loan was launched to Schaeffler's key relationship banks last week and a bank meeting has been scheduled for Friday, Aug. 8 in Frankfurt. Those banks have been invited to commit 700 million euros to the deal.
The fully underwritten loan, which is in the name of INA-Holding Schaeffler, comprises a mixture of term loans and multi-currency revolving credit facilities carrying one-year, three-year and five-year maturities, the banker added.
The banking source said not the entire 16.1 billion euro loan will be syndicated, as a small tranche will be kept by the arranging banks.
The loan is led by Bayerische Hypo-und Vereinsbank, Commerzbank, Dresdner Kleinwort, Landesbank Baden-Wurttemberg, Royal Bank of Scotland and UBS. Royal Bank of Scotland is acting as the global co-ordinator and facility agent.
The loan will be used to support Schaeffler's offer to Continental's shareholders to acquire all of their no-par value bearer shares in Continental AG by way of a voluntary public cash tender offer.
The remainder of the facilities will be used to refinance debt incurred in the acquisition of Continental, refinance the payment of the costs of the public voluntary cash tender offer and for general corporate and working capital purposes.
Reuters reported earlier on Tuesday that Continental will make its official recommendation to shareholders next week regarding the 11.3 billion euro takeover bid that it has so far rejected.
The acquisition would create the second largest automotive supplier with estimated pro-forma sales of 36 billion euros in 2008. (Reporting by Alasdair Reilly; Editing by Greg Mahlich)
