The syndication of the Eu3.5bn revolver for A+ rated Bayer is set to close heavily oversubscribed within the next few days. Mandated lead arrangers and joint bookrunners Bank of America, Deutsche Bank and JP Morgan are keeping the books open for an extra day or two to accommodate a few slow moving banks before fully wrapping up the deal.
Co-arrangers have been invited to commit Eu150m for 3bp and senior lead managers are asked to take Eu75m for 2.5bp.
The standby facility is priced at 22.5bp over Euribor with a 5bp commitment fee. If over 33% of the loan is drawn down the borrower is charged 2.5bp. If over 66% is drawn there is a 5bp fee.
The deal also includes a $1.5bn swingline facility.
A bank meeting to support the syndication of the Eu15bn revolver for Volkswagen was held yesterday (Thursday). Turnout, as expected, was strong and initial reaction to the deal was positive, if tempered with some comments on the deal's aggressive combination of pricing and size.
Yet most bankers accepted that the scale and reach of VW should give the deal the momentum it needs to close well.
Banks have been invited to commit as arrangers for a ticket of Eu600m, as co-arrangers for Eu400m, as lead managers for Eu200m or as managers for Eu75m. Volkswagen would not release the fees on offer.
Mandated lead arrangers on the transaction for the A1/A+ rated company are ABN Amro, Barclays Capital, BNP Paribas, Deutsche Bank, JP Morgan and Citigroup/SSSB.
The facility is split between a Eu10bn 364 day revolver, paying a drawn margin of 20bp over Euribor and a 6bp commitment fee, and a Eu5bn revolver which pays 25bp with a 9bp commitment fee.
No utilisation fee is charged if under 33% of the loan is drawn down, 2.5bp is charged if between 33% and 66% is drawn, and 5bp is charged if over 66% is drawn.
RAG held a presentation for banks this week for the syndication of its Eu2bn 2-1/2 year acquisition facility arranged by Deutsche Bank and Morgan Stanley.
The initial response from the market is encouraging with banks invited to join for Eu200m or Eu100m.
The deal backs the borrower's Eu28 per share offer for specialty chemicals group Degussa.
BNP Paribas, Dresdner Kleinwort Wasserstein and HVB have been mandated as lead arrangers and underwriters for a $1.25bn 4.5 year unsecured revolving standby LC facility for reinsurance company Hannover Re.
The deal pays an initial margin of 37.5bp over Libor. The margin will then be linked to long tern credit ratings for Standard & Poor's and AM Best which stand at AA and A+, respectively.
A commitment fee of 50% of the margin is payable on undrawn amounts.
The deal is being sold to a wide group of relationship and non-relationship banks on a take-and-hold basis. The tickets on offer are: senior arrangers taking $100m for 17.5bp; arrangers with $75m for 15bp; co-arrangers with $50m for 12.5bp; and, lead managers with $25m for 10bp.
Proceeds of the deal will collateralise treaties and claims related to reinsurance risk underwritings in the US.
The borrower is the fifth largest reinsurance company in the world with gross premiums of around Eu12bn.
Hannover last borrowed in 2000 when it secured two separate revolvers. One was an $800m three year loan arranged by the then Chase Manhattan in August and the other was a Eu250m five year deal arranged by Citibank.
Citigroup/SSSB (joint bookrunner), Commerzbank (joint bookrunner) and Dresdner Kleinwort Wasserstein (joint bookrunner) have launched syndication of the $750m five year multi-currency revolver for A1/AA- rated Henkel KgaA.
The deal pays a margin of 20bp and a facility fee of 10bp. If utilisation exceeds 33.3% a fee of 5bp is payable, drawings in excess of 66.6% pay 7.5bp.
In syndication, banks have been invited at two levels: arrangers with $70m for 10bp; and, co-arrangers with $40m for 6.5bp.
Proceeds will be used for general corporate purposes and to back up commercial paper programmes.
Henkel generated sales of Eu2.4bn and operating profits of Eu162m in the first quarter of 2002.
A bank meeting for the senior debt and mezzanine facilities backing the buy-out of Viatris from Germany's Degussa by Advent International was held this week.
UBS Warburg is the sole mandated arranger of the deal which has Eu215m of senior debt.
Senior debt comprises a Eu120m seven year 'A' piece, a Eu45bp eight year 'B' piece, a Eu30m seven year revolver and a Eu20m seven year acquisition line. All the seven year elements pay 225bp over Euribor while the eight year portion pays 275bp.
Banks have been invited to join with Eu25m take-and-holds for 100bp.
The mezzanine debt is being sold separately to specialist investors.
Responses are due in at the end of the month.
