Noble Group to raise $3bn debt at higher interest rates

According to sources, Noble Group is planning to raise up to $3bn in bank debt as part of its refinancing plan outlined earlier.

Noble could pay an interest rate of 225 basis points over the U.S. dollar Libor on a $1 billion one-year unsecured loan, more than twice the 85 basis points it paid just a year ago.

Further, Noble’s credit facility of about $2 billion would be backed by trade flows and inventories, with an announcement expected this week.

The number of lead arrangers on the unsecured loan was eight banks, which compared with 15 on a loan last year.

According to sources, Societe Generale, Mitsubishi UFJ Financial Group, ING and HSBC were among the lead arrangers on the transaction. 

The debt issuance is part of the company’s Chief Executive Yusuf Alireza’s plan to sell assets, cut business lines and trim debt.

Source:  Reuters