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Noble Group - OCBC Investment 2016-03-08: Noble Americas seeking up to US$2.5b of borrowing facility

Noble Group - OCBC Investment 2016-03-08: Noble Americas seeking up to US$2.5b of borrowing facility NOBLE GROUP LIMITED N21.SI 

Noble Group: Noble Americas seeking up to US$2.5b of borrowing facility 

  • According to a Bloomberg report, Noble Americas is holding a bank meeting in the US today for a 364-day credit facility guaranteed by parent Noble Group. 
  • Citing unnamed sources, the tranches are for (A) US$1b uncommitted and (B) US$1.5b committed lines. 
  • Opening pricing, based on Ba3/BB- ratings, are for (A) L+160 bps and (B) L+170; but if ratings are downgraded, the pricing steps up to (A) L+185 and (B) L+195. 
  • Bloomberg notes that the move is to refinance two credit facilities, including a US$1.1b letter of credit facility, due in Jul. 
  • While management noted that secured funding is cheaper, it does not believe that regaining an investment grade is a priority at this stage. 
  • We have a HOLD on the stock with an unchanged S$0.39 fair value


Carey Wong CFA OCBC Securities | http://www.ocbcresearch.com/ 2016-03-08
OCBC Securities SGX Stock Analyst Report HOLD Maintain HOLD 0.39 Same 0.39


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