Today's LIBOR Rates
1 M |
0.25781 |
 |
3 M |
0.29281 |
|
6 M |
0.49363 |
|
1 YR |
0.83488 |
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June 19, 2010
A number of major international loans and bond offerings launched this week with rates pegged to LIBOR, the London Interbank Offered Rate. LIBOR is a filtered average of rates that banks charge each other for short-term, unsecured loans.
According to a company news release, Prospect Capital, an investment firm specializing in private and small cap companies, has closed an expanded revolving credit facility. The initial close is $210 million with an accordion feature permitting expansion to $300 million. The rate is One-Month LIBOR plus 3.25% with a LIBOR floor of 1%, creating an effective minimum rate of LIBOR plus 4.25%. This reflects a 1.75% reduction from the previous effective rate of LIBOR plus 6% (basic rate of LIBOR plus 4% with a LIBOR floor of 2%).
Bloomberg BusinessWeek reported that Sri Lanka would issue $275 million in dollar-denominated bonds to cover maturing debt. The offering will be in two tranches comprising two year bonds and three year bonds. Rates will be based on Six-Month LIBOR, with margin to be announced. President Mahinda Rajapaksa won re-election amid promises of undertaking $1 billion in infrastructure projects to jumpstart the economy. Earlier in 2010, Sri Lanka sold $37 million bonds with yields of LIBOR plus 380 points and $55 million in bonds at LIBOR plus 395 points.
Per Reuters, state utility Saudi Electric received $1.1 billion in financing from a consortium of Saudi and international banks. The new loan will finance Saudi Electric’s operation of the Riyadh 11 power plant. Cost of funds will be 250 basis points above LIBOR and SIBOR (or SAIBOR), the Saudi Arabian Interbank Offered Rate, a regional counterpart to LIBOR, the London Interbank Offered Rate.
Reuters also reported that two business units of Teva Pharmaceutical sold $2.5 billion in notes in three tranches, one of which has rates based on LIBOR. Business unit Teva Pharmaceutical Finance III issued $500 million of 18-month notes with a yield of LIBOR plus 40 points.
Silverleaf Resorts announced in a news release that it has amended a revolving credit facility. Maximum amounts were increased to $75 million and maturity extended to June 2015. Cost of funds will be LIBOR plus 5.00% with a minimum rate floor of 6.25%.
According to a news release, California Coastal Communities, a land developer and homebuilder, has received new financing to relieve current debt and facilitate the company’s exit from bankruptcy. A $40 million loan in first lien position loan will have cost of funds of LIBOR plus 550 basis points, with a LIBOR floor of 200 basis points, creating an effective rate of LIBOR plus 750 points. A $42 million loan in second lien position will have a rate of LIBOR plus 950 basis points with a LIBOR floor of 200 basis points, creating an effective rate of LIBOR plus 1150 points.