October 12, 2017 / 11:36 AM / a year ago

LPC-Nestle completes €11bn annual loan refinancing

LONDON, Oct 12 (Reuters) - Nestle has renewed its existing syndicated credit facilities for a total of €11bn equivalent, lead bank Citigroup said in a statement.

The financing extends an existing five-year loan by a further year and also includes a €6.5bn equivalent one-year loan refinancing.

Nestle exercised the first one-year extension option on a €4.5bn equivalent, five-year revolving credit facility that was originally signed in October 2016.

It also agreed a €6.5bn equivalent, one-year revolving credit facility to refinance an existing €6bn one-year loan, that was also signed last October.

The facilities are used primarily to backstop the company’s short-term debt.

The financing closed significantly oversubscribed thanks to the strong support of Nestle’s relationship banks and the company’s high credit quality.

Although both S&P and Fitch both downgraded Nestle by one notch to AA- in June, Moody’s continues to rate the company at Aa2.

Citigroup was active bookrunner, while Banco Santander, Bank of America Merrill Lynch, MUFG, Barclays, BNP Paribas, Credit Suisse, Deutsche Bank, HSBC Bank, ING Belgium, JP Morgan, Royal Bank of Canada, Societe Generale and UBS Switzerland participated as bookrunners. (Editing by Tessa Walsh)

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