GSK signs £3.8bn-equivalent of loans tied to RFRs

Glaxo 230x150 Brentford HQ
By Mike Turner
08 Sep 2020

GlaxoSmithKlein, the UK pharmaceutical company, has refinanced dollar and sterling loans using risk-free rates, in one of the biggest transactions yet to avoid using Libor as the margin benchmark.

GSK has signed a $2.5bn 364 day loan and a £1.9bn three year facility. They replace existing facilities for the company. 

The dollar tranche is benchmarked against the Secured Overnight Financing Rate (Sofr), while the sterling portion uses the Sterling Overnight Index Average (Sonia). Both tranches are compounded in ...

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