BASIS POINT-Wesfarmers completes A$1.8 bln loan refinancing

MELBOURNE, April 24 (Reuters Basis Point) - Australian
conglomerate Wesfarmers Ltd (WES.AX: Quote, Profile, Research, Stock Buzz) has completed a A$1.8
billion refinancing priced at an all-in of 100 basis points
including fees, nearly triple the cost of the loan being
replaced, market sources said.

The self-arranged deal is to refinance a credit from A$4
billion of loans raised last year as part of a A$10 billion
financing to back the A$18 billion purchase of Coles Group Ltd.

Wesfarmers paid a margin of 32.5bp over BBSY last October
on the debt being refinanced based on the firm's current BBB+
and Ba1 ratings from Standard & Poor's and Moody's Investors
Service, respectively.

The new deal, maturing in December 2009, comprises an A$800
million term facility and a A$1 billion revolving credit for
working capital.

A few banks in the syndicate on the previous deal will not
participate in the new facility because they lack liquidity,
according to market participants.

Wesfarmers this week also announced a A$2.6 billion rights
issue, given the high cost of debt and expected strong support
from institutions for the new shares.

Wesfarmers also wanted to limit any perceived refinancing
risk, an analyst said.

"They were keen to take the whole refinancing risk issue
off the table," said Anthony Flintoff, S&P senior director of
corporate ratings in Melbourne.

The rights issue is underwritten by ABN AMRO Bank AAH.AS,
Deutsche Bank (DBKGn.DE: Quote, Profile, Research, Stock Buzz), Goldman Sachs JBWere (GS.N: Quote, Profile, Research, Stock Buzz), JP
Morgan (JPM.N: Quote, Profile, Research, Stock Buzz), Macquarie Capital Advisers (MQG.AX: Quote, Profile, Research, Stock Buzz) and UBS
(UBSN.VX: Quote, Profile, Research, Stock Buzz) for a collective underwriting fee of A$60 million, to
partially refinance the rest of the A$4 billion of debt.

Wesfarmers earlier this month sold US$650 million of
five-year bonds in the US private placement market at 425bp
over five-year Treasuries as part of the A$4 billion
refinancing.
($1=A$1.06)
(Reporting by Sharon Klyne)