Today's LIBOR Rates
1 M |
0.25781 |
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3 M |
0.29281 |
|
6 M |
0.49363 |
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1 YR |
0.83488 |
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April 9, 2010
Throughout the week, several notable corporations amended or acquired LIBOR-based debt. When amending debt, lenders typically boost interest rates to a higher margin above LIBOR in exchange for relaxed terms and covenants for the borrower. LIBOR stands for London Interbank Offered Rate and is a filtered average of rates that banks charge each other for unsecured, short-term loans.
On Tuesday, April 6, Bloomberg News reported that Supervalu, America’s second-largest grocery chain, had amended two LIBOR-based credit facilities. Maturity on $1.5 billion of a $2 billion revolving credit line was from June 2011 to April 2015. Cost of funds on this line will rise from LIBOR plus 1% to LIBOR plus 2.25%. $500 million of a $1 billion term loan also received maturity extension from June 2012 to October 2015. Cost of funds on this amended loan will rise from LIBOR plus 1.25% to LIBOR plus 2.75%.
| Per a company press release dated April 6, RadNet, a provider of medical imaging services, announced the refinancing of $585 million in debt. $385 million of the debt comprises a senior secured term loan and revolving credit facility. Cost of funds on these instruments will be LIBOR plus 3.75% with a LIBOR floor of 2%. |
On Wednesday, April 7, Bloomberg News reported that a division of CF Holdings, the number-two maker of nitrogen-based fertilizer, acquired $2.3 billion in LIBOR-based financing to facilitate the acquisition of Terra Industries. $2 billion consists of multiple-draw term loans and $300 million is a revolving credit line. Cost of funds will be LIBOR plus 3.5% with a LIBOR floor of 1.5%.
Per an April 8 press release, Emergency Medical Services announced a LIBOR-based debt refinance comprising a $425 million 5-year term loan and a $150 million revolving credit facility. Cost of funds on the term loan will be LIBOR plus 3%. Cost of funds on the revolver will be a step-down margin of LIBOR plus 2.75%, contingent upon reaching a total leverage level below 1.2x.