LONDON May 7 Global miner BHP Billiton has signed a $6 billion revolving credit facility that will be used to refinance existing facilities, coordinating banks Deutsche Bank and Royal Bank of Scotland said in a statement on Wednesday.
BHP's existing $5 billion and $1 billion multicurrency credit facilities have been cancelled as a result of the refinancing.
The loan, which has a five-year maturity with a two one-year extension options, will be used for general corporate purposes and as backup for commercial paper programmes.
The financing closed oversubscribed after unanimous support from the group of existing and new relationship banks invited during syndication. BHP elected not to take an increase and participating banks were scaled back.
BHP has taken advantage of strong competition in the European syndicated loan market to refinance its financing on improved terms.
The new financing pays a margin of around 20 basis points (bps) over LIBOR, banking sources said previously. [ID: nRLP45112a]
BHP is rated A+ by Standard & Poor's, A1 by Moody's and A+ by Fitch. (Editing by Christopher Mangham)