Heineken Proposes Terms on 2 Billion-Euro Loan Refinancing

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Heineken NV, the world’s third- largest brewer, proposed terms on a credit line to refinance a 2 billion-euro ($2.8 billion) facility maturing next year, according to three people with knowledge of the situation.
Heineken is seeking to pay 42.5 basis points over the euro interbank offered rate on money it draws from the five-year revolving credit with two one-year extension options, said the people, who declined to be identified because the negotiations are private. Money in a revolving credit can be borrowed again once it’s been repaid. A basis point is 0.01 percentage point.
The Amsterdam-based company plans to replace the loan signed in 2003 with a similar-sized transaction, Heineken spokesman John-Paul Schuirink said today by telephone. He declined to comment on the terms of the new deal.
Heineken’s existing credit line pays lenders an interest margin of 170 basis points on drawn funds, according to data compiled by Bloomberg. The loan was priced with an initial margin of 225 basis points by arrangers Barclays Capital, JPMorgan Chase & Co., Credit Suisse Group AG and Citigroup Inc.