The margin on the facility is 16bp and the commitment fee is 7.5bp. Banks are asked to join at levels of £15m and £10m.
The loan will be used for general funding purposes including the refinancing of existing debt. The borrower has undertaken to maintain outstandings at 50% of the uncancelled facility amount.
The building society last tapped the loan market in 1998 when it took a £200m two tranche revolver via Bayerische Landesbank and WestLB. That facility was for seven years and paid 16bp over Libor on the margin. The loan was oversubscribed and increased from £100m.
The borrower is rated single-A by Fitch.