BMW LONDON
Bayerische Motoren Werke AG (BMW), the world’s biggest luxury carmaker, proposed terms on a 6 billion- euro ($8 billion) credit line, according to two people with knowledge of the deal.
The five-year revolving facility will pay 35 basis points more than the euro interbank offered rate on drawn funds, said the people, who declined to be identified because the terms are private. The loan can be extended a maximum of two additional years, coordinators BNP Paribas SA, Citigroup Inc., Deutsche Bank AG and UniCredit SpA (UCG) said in a statement today.
The lenders began syndicating the deal to other banks today, according to the statement.
BMW will also pay a utilization fee of 20 basis points to draw more than one-third of the facility, and 40 basis points for more than two-thirds, said the people.
A spokeswoman at the Munich-based company declined to comment.
The interest margin is in line with the rate banks charged similarly-rated rival Volkswagen AG in July for a 5 billion-euro credit line, according to data compiled by Bloomberg.
BMW’s new credit line will renew a $8 billion financing signed in November 2005, according to the statement today. It agreed to pay interest of 15 basis points more than the London interbank offered rate to draw funds under that credit line maturing next year, according to Bloomberg data. A basis point is 0.01 percentage point.
Standard and Poor’s rates BMW at A-. Moody’s Investors Service in July upgraded the company by one level to A2.
Source: Bloomberg