Lenders honour pre-virus terms but pricing rockets

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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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