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 17, 2010
The week saw an international array of corporate lending and bond issuances with rates based on LIBOR, the London Interbank Offered Rate. LIBOR is a filtered average of rates that banks charge each other for short-term, unsecured loans.
On Monday, Hexcel Corporation, an advanced composites company based in Connecticut, announced a new senior secured loan facility with LIBOR-based rates. The facility comprises a $150 million term loan and $100 million revolver, both with a rate of LIBOR plus 2.75%, which can then drop to LIBOR plus 2.00% after December based on the company’s leverage ratio. This facility replaces a previous facility with rates of LIBOR plus 4.00% with a LIBOR floor of 2.50%, which created an effective minimum rate of LIBOR plus 6.50%.
On Tuesday, Dynasil Corporation of America, a New Jersey-based provider of technology and services to the medical, industrial, and homeland security/defense markets, announced a refinance of their LIBOR-based debt. The new credit facility encompasses a $3 million working capital line with a rate option of One-Month LIBOR plus 2.75% and a $5 million acquisition line at One-Month LIBOR plus 3.50%.
Reuters reported on Wednesday that Egyptian General Petroleum Corporation (EGPC) had received a $2 billion debt financing for export finance. The new loan, arranged by J.P. Morgan and National Bank of Egypt, has a rate of LIBOR plus 2.75%. EGPC had received a $900 million loan in November 2009 with a rate of LIBOR plus 3.50%.
Also on Wednesday, Dow Jones reported bond and debt sales with rates based on LIBOR. Interactive Data Corporation will sell $700 million in eight-year senior notes with a yield of LIBOR plus 5.00% with a LIBOR floor of 1.75%, creating an effective minimum rate of LIBOR plus 6.75%. Gentive Health Services is presenting a $600 million term loan with rates of LIBOR plus 4.50% to 4.75% with a LIBOR floor of 1.75%, creating an effective minimum rate of LIBOR plus 6.25% to 6.50%.
On Friday, Reuters reported that SUEK, a Russian steam coal producer, is seeking $700 million in pre-export financing. The rate will be LIBOR plus 3.25%. SUEK’s previous loan was an $800 million pre-export loan in two tranches: Tranche 1 with a rate of LIBOR plus 1.40% and Tranche 2 with a rate of LIBOR plus 1.50% for years one and two, rising to LIBOR plus 1.60% in year three and LIBOR plus 1.70 % for the remainder of the term.