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
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http://www.ocbcresearch.com/
2016-03-08
OCBC Securities
SGX Stock
Analyst Report
0.39
Same
0.39
