GLOBALCAPITAL INTERNATIONAL LIMITED, a company

incorporated in England and Wales (company number 15236213),

having its registered office at 4 Bouverie Street, London, UK, EC4Y 8AX

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  • CHASE Manhattan and Deutsche Bank are preparing the syndication strategy of the $17bn global debt consolidation facility for DaimlerChrysler. Bankers say that the deal will not be offered to other institutions until the second week of June and that DaimlerChrysler will want its closest relationship banks to play senior roles.
  • DOLLAR swap spreads continued their sharp correction to wider levels at the beginning of the week. Five year spreads climbed to about 66bp and 10 year spreads to 80.5bp/81bp, a 10bp move in just one week. Nonetheless, secondary corporate spreads in the US moved by an average of 20bp-25bp in the same period, so arbitrage remained wafer thin.
  • Last week, it was strongly rumoured in the market that Fannie Mae had swapped some or all its $1.5bn long dated issue. On closer inspection this seemed unlikely, as 30 year swap bids firmed and the sub-Libor level available did not seem sufficiently attractive for such a premier borrower. However, early this week, the rumours resurfaced as swap sources said that Fannie Mae was taking 30 year bids. By Tuesday, some swap traders said that perhaps half of the issue had been swapped to floating rate.
  • INTERNATIONAL telecoms company Cable & Wireless has launched a £3.8bn syndicated loan, secured on its 50% stake in UK mobile phone network One-2-One. Lead arrangers Bank of America, Chase, Citibank, HSBC and Paribas will each underwrite £800m of two year debt to a special purpose company, enabling it to acquire the stake.
  • Hungary Talk circulating at the end of the week that ABN Amro had won the arranging mandate for the Eu50m five year deal for telecommunications company Matav, was inaccurate.
  • India Presentations were held this week by banks bidding for the arranging mandate for a $100m facility for Power Finance Corporation's (PFC).
  • LEAD ARRANGERS Chase Manhattan, Credit Suisse First Boston, Deutsche Bank and SG have overseen the signing of the popular $2.8bn (increased from $2bn) 364 day revolving credit for Glencore International AG. As the increase implies, syndication was well backed and heavily oversubscribed.
  • Canada Bayerische Landesbank and CIBC Wood Gundy have wrapped up a $635m facility that will back AirCanada's purchase of eight Airbuses including six Airbus 330s and two Airbus 340s.
  • ARRANGER Den norske Bank has launched a Nkr700m revolver for Kongsberg Gruppen, the Norwegian defence group. The five year deal has a starting margin of 45bp over Euribor, rising to 47.5bp for the last two years. The margin is linked to an equity:debt ratio, so when equity rises to 30% to 35% of debt the margin falls to 42.5bp and 45bp. If it rises above 35% the margin becomes 40bp and 42.5bp.
  • Finland Arranger Bankgesellschaft Berlin has launched a debut Eu50m revolving credit for Aktia Savings Bank. The five year transaction carries a margin of 19.5bp over Euribor.
  • SLOVENIAN mobile phone operator Mobitel is launching a Eu120m term loan arranged by Sumitomo today (Friday). The deal is divided between a Eu85m EIB guarantee facility and a five year Eu35m syndicated facility. The EIB debt is further split into two tranches of 5-1/2 and seven years.
  • BANK OF Piraeus SA is set to make its long awaited debut in the Euroloan markets with a Eu150m 364 day term loan with a margin which has surprised many bankers. The facility, arranged by Bank of Tokyo-Mitsubishi, Banca Commerciale Italiana, Bank of New York and Commerzbank, carries a margin of 15bp over Euribor and a co-arranging fee of less than 10bp, giving an all-in bankers believe is too tight for market conditions.