Deutsche Bank has taken the lead slot alongside J.P. Morgan for a $3 billion five-year multi-currency revolver for Siemens after taking a backseat on the last credit led by J.P. Morgan. Lothar Schlichting, a spokesman for Deutsche Bank in Frankfurt, Germany, said, "we were surprised we did not lead it five years ago. Deutsche Bank has a very broad relationship with Siemens." Schlichting would not say what ancillary business is conducted with the massive global conglomerate. Pay-to-play is as much a theme in Europe as in the U.S. Recently, Deutsche Telekom lined up three underwriters for a bond deal where the underwriters, including Deutsche Bank, were the lead arrangers on a company loan.
The new facility will be used to refinance a $2 billion multi-currency line arranged in 1995 for CP backup purposes. A bank meeting will be held in Munich on April 30, and key relationship banks are invited to participate. Arrangers are being asked for $200 million, which offers 10 basis points and co-arrangers tickets are available at $100 million with 8 basis points on offer. The facility fee is also 8 basis points with a drawn margin of 22.5 basis points.