Skandia Insurance Co. is in the market via its special funding vehicle Skandia Capital Aktiebolag (Publ) with a $350 million, five-year Deutsche Bank-led facility to refinance existing debt. A source familiar with the situation told Insurance Finance & Investment, an LMW sister publication, that the Swedish insurer will meet with investment banks soon to discuss a possible debt offering as part of the refinancing effort. A Skandia spokeswoman referred the matter to company officials, who were on vacation and did not return calls by press time.
The $350 million facility will be used to refinance an existing $350 million, seven-year revolver set to mature in 2003, a banker familiar with the situation said. She added the current facility was led by Den Danske Bank and Skandinaviska Enskilda Banken (SEB). A source noted roughly seven banks, including Den Danske and SEB, vied for the lead, but Skandia switched leads because the insurer prefers to rotate lead roles so that banks might support all the insurer's deals. A Deutsche official confirmed the loan was in syndication.
The loan is currently being syndicated out of London with commitment tiers of $20 million, $30 million and $40 million on offer and a due date of July 10, the banker said. She noted the pricing for the facility was 40 basis points over LIBOR, up from the current loan's LIBOR plus 17.5.