Dubai World eyes banks for $5bn loan
State-owned investment group Dubai World is close to appointing banks to arrange a syndicated term loan that will refinance the borrower's $5 billion, 364-day bridge loan that signed last year, a banking source said on Thursday.
The mandate to arrange the loan is expected to sign in the next two weeks.
The original $5 billion loan backed the borrower's plan to buy into U.S. casino operator MGM Mirage.
It paid a margin of 85 basis points (bps) over LIBOR for the first six months, stepping up to 110 bps thereafter, which was regarded at the time as generous by the loan market.
The banking source said the new deal will have a longer term, split into tranches with different maturities and that pricing will reflect current market conditions, which have deteriorated since the original loan signed. (Reuters)
The mandate to arrange the loan is expected to sign in the next two weeks.
The original $5 billion loan backed the borrower's plan to buy into U.S. casino operator MGM Mirage.
It paid a margin of 85 basis points (bps) over LIBOR for the first six months, stepping up to 110 bps thereafter, which was regarded at the time as generous by the loan market.
The banking source said the new deal will have a longer term, split into tranches with different maturities and that pricing will reflect current market conditions, which have deteriorated since the original loan signed. (Reuters)
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