It’s trying to refinance two credit facilities.
Beleaguered Noble Group may finally be on its last legs, as reports say the group’s US arm is attempting to secure financial assistance.
Citing a Bloomberg report, OCBC says that Noble Americas is holding a bank meeting in the US today for a 364-day credit facility guaranteed by Noble Group.
The tranches are for US$1b uncommitted, and US$1.5b committed lines. Opening pricing, based on Ba3/BB- ratings, are for L+160 bps and L+170. However, if ratings get a downgrade, the pricing climbs up to L+185 and L+195.
“Bloomberg notes that the move is to refinance two credit facilities, including a US$1.1b letter of credit facility, due in July,” states OCBC.
Further, while management noted that secured funding is cheaper, it does not think an investment grade is a priority at this stage.
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