LONDON, Sept 19 (Reuters) - German industrial conglomerate Siemens said on Thursday that it has launched syndication a $3 billion revolving credit facility.
The financing will be used to refinance part of a $4 billion loan that matured in August, banking sources said.
A+/A1 rated Siemens is taking advantage of competitive loan market conditions to lock in liquidity at currently low prices, the bankers said.
The self-arranged financing, which is for five years plus two one-year extension options, is being coordinated by Commerzbank, Deutsche Bank and JP Morgan, the bankers said.
Siemens will pay a margin of 20 basis points (bps) over LIBOR on the new financing, the bankers said, well inside the 30 bps the company pays on the 4 billion euro ($5.34 billion)facility that was arranged in April last year.
Pricing on the new deal is also well inside Siemens’ five-year credit default swaps, which were quoted at 50.20 on Wednesday, according to Thomson Reuters CreditViews.
The deal Siemens is replacing was arranged in August 2006 and comprised a $1 billion term loan, which was drawn in January 2007 and an undrawn $3 billion revolving credit facility. That deal was arranged by bookrunner Deutsche Bank and paid a margin of 15 basis points (bps) over Libor, according to Thomson Reuters LPC data. ($1 = 0.7492 euros) (Editing by Christopher Mangham)