LONDON Oct 16 Norwegian aluminium company Norsk
Hydro has launched syndication of a $1.5 billion loan
to refinance an existing undrawn $1.7 billion facility that is
due to mature in July 2014, banking sources said on Wednesday.
The financing is for five years with two one-year extension
BBB/Baa2 rated Norsk Hydro is paying a flat margin of 45
basis points (bps) over Libor on the new financing. Bookrunners
and mandated lead arrangers are invited into the deal on $175
million tickets for a 10 bps arrangement fee and a 30 bps
participation fee, one of the sources said.
Average loan pricing for European Triple B rated companies
fell to 48 bps in the third quarter from 66 bps in the second
quarter, according to Thomson Reuters LPC data, as heightened
competition between banks to win mandates has pushed down
"It is correct that our current credit line expires in 2014.
We have previously stated that it would not be unnatural to
establish a new credit line before the current one expires,
however we will not comment any further on this process," Halvor
Molland, vice president, communication at Norsk Hydro said.
Norsk Hydro's existing $1.7 billion facility was arranged
in 2007 by BNP Paribas, Citigroup, Deutsche Bank and DnB NOR.
That financing was arranged at the height of the market and was
for a straight seven years.
Norsk Hydro tapped the loan market in March 2009 for a 750
million euro ($1.01 billion), three-year credit facility via
bookrunners and mandated lead arrangers BNP Paribas,
Commerzbank, DnB NOR, Nordea, SEB and Societe Generale.
($1 = 0.7412 euros)
(Editing by Christopher Mangham)