BNP Engineers $300 MLN L/C Deal

  • 09 Sep 2001
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BNP Paribas launched last Friday a $300 million letter of credit facility for Aliso Viejo, Calif.-based Fluor, an engineering and construction company which designs, builds and staffs offices. The deal is split into a three-year, $200 million revolver and a $100 million 364-day facility. Pricing is off a ratings grid, with 55 basis points on an issued credit. Commitment fees for the three-year and 364-day facilities are 15 basis points and 12.5 basis points, respectively. The company carries an A3, A- rating. From BNP Paribas' viewpoint, a letter of credit facility as a standalone asset provides a good return, while the required capital put aside as a percentage of the credit is less than for a revolver, said a banker following the deal. The deal is considered well priced to the market and to existing facilities.

Fluor already has a $450 million revolver led by Salomon Smith Barney and Bank of America, priced at LIBOR plus 1/4%. The previous letter of credit facility, was led byANZ Banking Group and totaled $100 million. Officials at BNP Paribas declined comment. Calls to Micahel Steuert, senior v.p., and cfo of Fluor, were referred to Keith Karpé, head of media relations, who said it was the right time to enter into the new letter of credit with BNP Paribas, but declined further comment.

  • 09 Sep 2001

GlobalCapital European securitization league table

Rank Lead Manager/Arranger Total Volume $m No. of Deals Share % by Volume
1 Citi 2,007 6 16.61
2 Goldman Sachs 1,798 4 14.88
3 BNP Paribas 1,434 4 11.87
4 Barclays 1,097 2 9.08
5 Morgan Stanley 1,094 2 9.06

Bookrunners of Global Structured Finance

Rank Lead Manager Amount $m No of issues Share %
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1 Citi 20,542.69 67 10.85%
2 JPMorgan 18,820.53 50 9.94%
3 Bank of America Merrill Lynch 17,976.22 56 9.49%
4 Wells Fargo Securities 16,568.24 48 8.75%
5 Barclays 13,499.53 45 7.13%