Today's LIBOR Rates
1 M |
0.25781 |
 |
3 M |
0.29281 |
|
6 M |
0.49363 |
|
1 YR |
0.83488 |
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May 08, 2010
Big Deals Tied to LIBOR
Rates on major bonds and borrowings from banking, auto, oil, entertainment industries based on LIBOR index
During the week, major companies from around the world reported significant bond offerings and loan programs with rates based on LIBOR, the London Interbank Offered Rate. LIBOR is a filtered average of rates that banks charge each other for unsecured, short-term loans.
Major LIBOR-based bonds:
The Wall Street Journal reported that Bank of America/Merrill Lynch is reentering the market for bonds backed by consumer loans with a $750 million offering. Pricing guidance will be 30 basis points above One-Month LIBOR. The article noted a rise in such bond offerings as more credit cards are being issued. Per this trend, Hyundai announced $960 million in securities backed by auto loans. A $219 million tranche will have yields of one to two basis points over LIBOR.
Major LIBOR-based borrowings:
On May 3, LatinFinance reported that Canadian mining company Barrick Gold received $1 billion in financing for its Pueblo Viejo project in the Dominican Republic. Cost of funds on $400 million of its loan will be LIBOR plus 3.25%. In other lending to natural resources companies, El Paso Corporation and Global Infrastructure Partners announced on May 5 that they had concluded $1.5 billion in financing for their Ruby Pipeline project. The borrowing rate:
- LIBOR plus 3% for 2010, 2011
- LIBOR plus 3.25% for 2012, 2013
- LIBOR plus 3.75% for the remainder of the term, ending in 2017, contingent on refinancing $700 million of the debt by the end of 2014
On May 6, Bloomberg BusinessWeek reported that Live Nation, the world’s largest concert promoter received $1.2 billion to refinancing loans used in its purchase of Ticketmaster. Live Nation will pay LIBOR plus 3.5% on its various loan components with a LIBOR floor of 1.5%, creating an effective minimum rate of LIBOR plus 5%.