IFR 03.21.2020

64 International Financing Review March 21 2020

The RCF, which matures in July 2023 was

originally arranged in July 2016 via

coordinators HSBC, Mizuho Bank, and SEB

along with ING, JP Morgan and MUFG as

bookrunning mandated lead arrangers.

Bank of China, Citigroup, DNB Bank,

Morgan Stanley, Nordea Bank, Societe

Generale, Wells Fargo Bank and Northern

Trust were mandated lead arrangers.

UK

BP RAMPS UP LIQUIDITY

BP has signed a US$10bn revolving credit

facility that is available for two years at pre-

agreed margins.

4HEûUNDRAWNûlNANCINGûISûINûADDITIONûTOû

US$7.625bn of other undrawn standby

facilities from a group of 25 international

banks that are available for drawing and

REPAYMENTûUPûTOûTHEûlRSTûHALFûOFû

Ashurst advised BP on the transaction.

BP had cash and cash equivalents of

US$22.5bn at the end of 2019 primarily

invested with highly rated banks or money

market funds and accessible at immediate

and short notice.

The company says it manages its cash

position to have adequate cover to respond

to potential short-term market illiquidity

and short-term price volatility.

BP is rated A– by S&P and A1 by Moody’s.

SCHRODERS TRANSITIONS TO SONIA

Asset and wealth manager SCHRODERS has

transitioned its £510m corporate revolving

credit facility to Sonia from Libor.

Companies are beginning to transition

away from Libor to risk-free rates ahead of the

planned cessation of Libor at the end of 2021.

BRITISH AMERICAN TOBACCO signed a £6bn RCF

earlier in March, referencing Sonia and

SOFR, while ROYAL DUTCH SHELL agreed a

US$10bn SOFR-linked RCF in December.

The UK’s Financial Conduct Authority has

set a target of the end of the third quarter to

stop new Libor-based cash contracts that

mature beyond 2021.

Schroders converted its RCF into an

environmental, social and corporate

governance-linked facility in October, also

extending the maturity of the facility by one

year to October 2024.

Bank of America was facility agent and

SUSTAINABILITYûCOORDINATORûONûTHEûlNANCINGû

Barclays, Citigroup, HSBC, ICBC, Lloyds, and

Standard Chartered Bank also participated.

MCCARTHY & STONE DRAWS DOWN

Retirement home developer MCCARTHY & STONE

has fully drawn its £200m revolving credit

facility as it prepares for an expected

material impact on trading from the

coronavirus outbreak.

The move comes after the UK government

announced an escalation of protective

measures being put in place to slow the

spread of the virus, including likely self-

isolation for those over 70 years of age for an

initial period of around three months.

The drawdown means McCarthy & Stone

has £127m of cash available.

The company is looking at a number of

actions to balance the preservation of cash

with the long-term needs of the business.

4HEûCOMPANYûHASûCANCELLEDûAûlNALûDIVIDEND

The secured RCF, which pays a margin of

170bp over Libor, matures in March 2023

and was provided by Barclays, HSBC and

NatWest.

3I SIGNS £400m REFI

Private equity and infrastructure investor 3I

GROUP has signed a £400m revolving credit

facility, replacing a £350m RCF that was due

to mature in September 2021.

4HEûlNANCINGûHASûAûlVE

YEARûMATURITYû

with two one-year extension options.

4HEûRElNANCINGûSAWûSTRONGûSUPPORTûFROMû

new and existing banks.

Barclays COORDINATEDûTHEûlNANCINGûALONGû

with ABN AMRO, China Construction Bank,

Citigroup, Rabobank, Deutsche Bank, ICBC, ING

Bank and SMBC as bookrunners and

mandated lead arrangers.

Banco de Sabadell, Goldman Sachs, Royal Bank

of Canada and Societe Generale were lead

arrangers.

Barclays was also documentation agent.

The previous RCF paid 60bp over Libor

ANDûHADûNOûlNANCIALûCOVENANTS

BAKKAVOR SIGNS SLL REFI

Prepared food producer BAKKAVOR has signed

AûaMûLOANûRElNANCINGûWITHûMARGINSû

linked to some of the company’s corporate

responsibility targets.

4HEûlNANCINGûCOMPRISINGûTERMûLOANûANDû

revolving credit facilities, replaces

Bakkavor’s £410m term loan A and RCFs

that were due to mature in June 2021.

4HEûNEWûlNANCINGûMATURESûINûûBUTû

may be extended by a further two years.

In line with the company’s strategy, the

margin on the facilities is also linked to two

of the group’s CR targets: its performance

against food waste reduction and

greenhouse gas emission targets.

4HEûlNANCINGûISûBEINGûPROVIDEDûBYûAû

group of 10 banks, including three new

banks, coordinated by HSBC and Rabobank as

bookrunners and mandated lead arrangers.

Bakkavor agreed a £485m loan

RElNANCINGûINû&EBRUARYûûCOMPRISINGû

the £200m RCF, the £210m term loan A and

a £75m term loan.

4HATûlNANCINGûWASûALSOûCOORDINATEDûBYû

HSBC and Rabobank as bookrunning

mandated lead arrangers. Barclays Bank and

Royal Bank of Scotland were mandated lead

arrangers.

Allied Irish Bank, Citigroup, Fifth Third

Bank, NIBC Bank and M&G Investments also

participated.

FERGUSON SEALS US$1.1bn REFI

Plumbing and heating products distributor

FERGUSON, previously called Wolseley, has

signed a US$1.1bn revolving credit facility to

replace an £800m RCF that was due to

mature in September 2022.

4HEûlNANCINGûWHICHûISûFORûANûINITIALûlVEû

years plus two one-year extension options,

was agreed with a group of 11 banks.

The previous RCF was put in place in 2015

via coordinators Barclays and Lloyds Bank

alongside BNP Paribas, Danske Bank,

Deutsche Bank, ING Bank and Royal Bank of

Canada as bookrunners and mandated lead

arrangers.

Wolseley changed its name to Ferguson in

2017 to better align itself with the largest

subsidiary in the group, US-based Ferguson

Enterprises.

GYM GROUP DRAWS REMAINING RCF

THE GYM GROUP has drawn the remaining

£20m of its £70m revolving credit facility as

a precautionary measure against disruption

caused by the coronavirus.

The company has seen participation levels

in its gyms drop as increasing numbers of

people self-isolate and with similar

businesses in Europe announcing closure

periods, the company expects disruption to

its business.

The Gym Group will look to reduce costs

and protect cash and liquidity.

The four-year RCF was arranged in

December via HSBC, NatWest and Banco de

Sabadell.

The facility pays an initial 175bp over

Libor, depending on leverage.

4HEûlNANCINGûALSOûINCLUDEDûAûaMûACCORDIONû

option, allowing the facility to be increased to

£100m with the consent of the banks.

PENDRAGON SHRINKS REVOLVER

Car dealership PENDRAGON has amended and

extended its revolving credit facility,

REDUCINGûTHEûlNANCINGûTOûaMûFROMû

aMûTOûREmECTûREDUCEDûREQUIREMENTS

The maturity of the facility has been

extended by one year to March 2022.

Pendragon will pay a margin increase of

50bp on the amended facility.

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