Mubadala Said to Pay 45 Basis-Point Margin on $2 Billion Loan

Mubadala Development Co., a state- owned Abu Dhabi investment company, plans to pay 45 basis points above the benchmark rate on a $2 billion credit facility it’s raising, according to two bankers familiar with the plan.

Interest on the three-year revolving loan may rise up to 75 basis points, or 0.75 percentage point, over the London Interbank Offered Rate depending on the amount drawn, said the bankers, who asked not to be identified because the information is private. The money will be used to refinance an existing $2.5 billion three-year facility that expires in April, they said.

Mubadala, rated AA at Standard & Poor’s and Fitch Ratings, has asked banks to propose better terms than the 75 basis-point margin it pays on the existing loan, Kelly Thomson, Mubadala’s head of structured finance, said Feb. 5. Revolving credit loans allow borrowers to tap and repay funds multiple times.

Read more: http://www.bloomberg.com/news/2013-03-28/mubadala-said-to-pay-45-basis-point-margin-on-2-billion-loan.html