Glencore Xstrata price structure raises eybrows

Glencore xstrata
By Michael Turner
08 May 2014

Glencore Xstrata hosted a packed bank meeting on Wednesday for its $17.3bn loan refinancing, but some bankers considering the deal said the flat 40bp fee structure for those joining the syndication left little reason to provide anything other than the smallest ticket.

The Swiss-based commodities trading and mining group is raising one and five year loans to refinance a $17.3bn facility signed in June last year.

The one year tranche of the new deal offers a margin of 50bp over Libor, while the five year pays 60bp, subject to a ...

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