INVESTMENT GRADE
Telefónica's €3bn RCF refinancing closes oversubscribed
Telefónica, the Spanish telecoms company, has achieved healthy support for the early refinancing of a €3bn revolving credit facility originally raised in July 2010.
More than 20 banks worked on the transaction, which pushes the maturity out from 2015 to 2019, according to a senior banker.
The deal was priced at 85bp over Euribor, plus utilisation fees, and was 40% oversubscribed, the banker added. The original facility had a margin of 80bp, according to Dealogic.
Telefónica is a regular loan market user, with two deals in 2013, according to Dealogic. The larger of these was a €1.4bn deal in February with 23 banks. Then in August it borrowed $733m from BBVA, Barclays and Santander.
As of September 2013, Telefónica Group’s net debt amounted to €46.1bn, with a leverage ratio at 2.3 times Ebitda. Revenues in the first nine months of last year totalled €42.6bn.
Galliford Try signs £400m RCF to back growth
Galliford Try, the UK housebuilding and construction business, has signed a £400m five year unsecured bank loan to refinance debt and support its growth plans.
The facility represents a €75m increase on the one it replaces, the borrower said on Wednesday. Galliford’s last debt issuance consisted of a £325m revolver, signed in May 2011 and due to mature in 2015, according to Dealogic.
“The increased facility gives the group capacity to continue its investment in land and achieve its growth strategy,” Galliford said in its financial report on the final six months of last year, published on Wednesday.
Barclays, HSBC and RBS were the mandated lead arrangers on the 2011 deal, which refinanced a £450m facility signed in February 2007. All three banks worked on the new transaction, with Santander also joining the syndicate.
Galliford’s profit before tax totalled £38.1m in the second half of 2013. As of 31 December, its net debt was £85.9m. Galliford says it expects to double 2013’s full year profit before tax and earnings per share by 2018.