DRINKS and leisure group Bass has signed a Eu2bn Euro-MTN programme with which it intends to refinance bank facilities supporting its $3bn acquisition of Intercontinental Hotels earlier this year. The borrower hopes to use the MTN market to extend its financing beyond the five year maturity of its syndicated loan. However, with margins of 22.5bp for the first two years rising to 27.5bp for the final three years on the facility, the bond and MTN markets are still unable to provide Bass with better funding.
October 16, 1998