Global supply chain manager Noble Group has closed syndication on a US$700mn revolving letter of credit and guarantee facility. Mandated lead arrangers on this deal are ING Bank, The Royal Bank of Scotland, Soci&eaute;té Générale committed facility provides Noble with additional capacity to issue guarantees and stand-by letters of credit.
Noble has previously signed a similar facility last year, however this latest loan marks a 40% increase over the last US$500mn deal signed in December 2007. It also extends the facility's maturity for an additional two years.
The facility featured an all-in pricing on a blended utilisation basis of 87 basis points per year for the top tier participating banks.
The borrower's previous US$500mn facility featured a margin of 50 basis points, and was signed in December 2007.
During general syndication, 12 additional banks joined the deal: ICICI Bank, KfW IPEX-Bank; The Bank of Tokyo-Mitsubishi UFJ; Commerzbank Aktiengesellschaft; DBS Bank; Lloyds TSB Bank; CITIC; Ka Wah Bank; Deutsche Bank; Commonwealth Bank of Australia; Banco Santander; Arab Bank; and KBC Bank.
Although the syndications market has been relatively tough for many banks looking to sell down a deal, this facility is said to have been well-received. "We believe the strong take-up of the facility is an endorsement of Noble’s strategy and we look forward to working with our commercial bankers in the future to continue to bring successful transactions to the market,” comments Richard Elman, Noble Group CEO.
Noble’s previous US$500mn deal marked the first time ever a transaction involving the syndication of solely unfunded instruments had closed in Asia.
The previous facility also attracted a large group of banks during syndication, with at least 18 relationship banks taking part in the deal, as well as a number of banks new to Noble. (Click here to read more in GTR March-April 2008)
Noble Group is regarded as one of the market leaders in the management of global supply chains for agricultural, industrial and energy products. It has annual revenues exceeding US$20bm, and has been in acquisition mode in recent years, having acquired a number of strategic assets across the globe with the aim of having a presence at every level of global supply chains. It owns coal and iron ore mines, grain crushing facilities, ports, and sugar and ethanol plants.
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