Today's LIBOR Rates
1 M |
0.25781 |
 |
3 M |
0.29281 |
|
6 M |
0.49363 |
|
1 YR |
0.83488 |
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July 11, 2010
Around the globe, major corporate financings and bond offerings were announced with rates tied to LIBOR, the London Interbank Offered Rate. LIBOR is a filtered average of rates that banks charge each other for short-term, unsecured loans.
Bloomberg BusinessWeek reported that Japanese brokerage firm Nomura Holdings, Inc. sold dollar-denominated Islamic bonds in Malaysia that complied with the interest ban of Shariah law. The $100 million issuance will have a yield of LIBOR plus 160 points.
Per Bloomberg BusinessWeek, telecom company Midcontinental Communications is seeking a $350 million term loan B an interest rate LIBOR plus 4.5 to 4.75% with a 1.75% LIBOR floor, creating an effective minimum rate of LIBOR plus 6.25%. The loan is intended to fund a shareholder payout and debt refinance.
On July 7, StreetInsider.com reported that Olympic Steel commenced a $125 million revolving credit line. The company will have a choice in the index used for cost of funds, with one option being 30-Day LIBOR plus 1.5%.
Reuters reported that Reliance Industries, India’s largest conglomerate, is presenting a bullet loan—entire principal repayment due at the end of the loan’s term—with two LIBOR-based tranches. Tranche A will be five years with a rate of LIBOR plus 145 points. Tranche B will be seven years at LIBOR plus 170 points.
On July 8, Bloomberg News reported that Fidelity National reduced pricing on a LIBOR-based loan it is seeking to finance a stock buyback. The new loan terms are LIBOR plus 3.75% with a LIBOR floor 1.5%, creating an effective minimum rate of LIBOR plus 5.25%. Fidelity National had originally proposed a loan at LIBOR plus 4% prior its rejection of a buyout bid.
According to Economic Times, ICICI, Mumbai’s largest private sector lender, had priced $500 million in LIBOR-based bonds. The issuance will mature in 5.5 years with a coupon that calculates to LIBOR plus 275 points.
Per Bloomberg News, Neenah Foundry, manufacturer of manhole covers and sewer grates, will receive debtor-in-possession (DIP) financing with rates based on LIBOR. The financing will compromise a $60 million term loan and $100 million revolving credit line. Cost of funds on the term loan will be LIBOR plus 9% with a 2% LIBOR floor, creating an effective minimum rate of LIBOR plus 11%. Cost of funds on the revolving facility will begin at LIBOR plus 3.75% and range from LIBOR plus 3.75% to LIBOR plus 4% based on drawdown.