Lenders honour pre-virus terms but pricing rockets

By Mike Turner
18 Mar 2020

Germany's Covestro and the UK's 3i have both signed new revolving credit facilities with terms that were agreed before the Covid-19 pandemic sent markets plunging, but lenders said that new deals will have far higher margins.

Polymers company Covestro, which Bayer spun off in 2018, has signed a €2.5bn revolving credit facility, while private equity firm 3i has signed a £400m revolver. Both have five year maturities with two one year extension options.

"It was very smooth," said a source close to the 3i deal.

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