HONG KONG (Basis Point) - Deutsche Bank and Standard Chartered Bank have been mandated by San Miguel Corp for a one-year bridge loan which funds the takeout of an outstanding $600 million in exchangeable notes due in 2014, according to sources.
The loan size is $650 million and is fully underwritten by the banks, said a source familiar with the matter.
The deal has an opening margin of 165bp over Libor, stepping up to 200bp over Libor after six months, according to sources.
San Miguel launched on Jan. 24 the tender offer for redemption of the 2014 notes. The notes, issued in 2011, are listed on the Singapore stock exchange.
The tender offer closes on Tuesday.