BNP Paribas is shopping a $2 billion, one-year commercial paper backstop for Zurich Capital Markets, an increase on the current $1.25 billion facility. A banker noted pricing on the investment-grade credit is similar to the last deal at LIBOR plus 22.5 basis points, though there are slightly better up-front fees and enhanced support from the parent company Zurich Capital. Last year the BNP-led facility blew out to $2 billion despite the light up-front fees of less than 3 basis points for commitments up to $200 million, with bankers citing ZCM as a key relationship account for lenders and the double-A rating.
Garry Crowder, managing director for Zurich Capital Markets did not return calls seeking comment. BNP officials declined comment.