LONDON Oct 15 German business software firm SAP
has launched syndication of a 2 billion euro ($2.70
billion) credit facility to refinance its existing 1.5 billion
euro facility, which was due to mature in December 2015, banking
sources said on Tuesday.
The financing, which represent SAP's core relationship
banking facility, was launched on Monday via coordinating banks
Bank of Tokyo-Mitsubishi UFJ, Citigroup, Deutsche Bank and
Helaba, one of the sources said.
SAP declined to comment.
Low deal flow has put pressure on loan pricing as banks bid
aggressively on deals to win loan business, encouraging some of
Europe's top borrowers like SAP to refinance early to secure
future liquidity at cheap pricing levels.
SAP's new loan pays a margin of 20 basis points (bps) to
22.5 bps over Euribor, significantly lower than 45 bps the
company achieved on its existing deal.
SAP has already tapped the loan market this year for a 1
billion euro facility that backed its acquisition of e-commerce
specialist hybris. That deal, which was arranged by sole
underwriter Deutsche Bank, had a one-year maturity with a
one-year extension option. The dual currency loan paid 60 to 90
bps over Euribor/Libor.
($1 = 0.7406 euros)
(Additional reporting by Tessa Walsh, Editing by Christopher