LONDON, March 20 (Reuters) - Mining giant Anglo American has signed a $5 billion, five-year loan refinancing via a group of 28 banks, banking sources said on Wednesday.
The financing replaces an existing $3.5 billion credit facility originally agreed in July 2010 and a $2 billion facility for majority-owned diamond miner De Beers from Oct. 2011.
Anglo American was not immediately available for comment.
The financing was well received in the market, closing oversubscribed, one of the sources said, despite a backdrop of disappointing results and the miners’ conflict in South Africa.
The completion of the loan will provide a welcome boost to European syndicated loan volumes in a relatively quiet first quarter, sources said.
The loan was coordinated by Commerzbank and Mizuho Corporate Bank and was structured as a self-arranged club deal.
Banks committing to the financing were ANZ Banking Group, Bank of America Merrill Lynch, Bank of China, Bank of Tokyo-Mitsubishi UFJ, Barclays Bank, BBVA, BNP Paribas, Citibank, Commerzbank, Credit Agricole CIB, Credit Suisse, EDC, Goldman Sachs, HSBC, JP Morgan, Lloyds TSB, Mizuho Corporate Bank, Morgan Stanley, National Australia Bank, Royal Bank of Canada, Royal Bank of Scotland, Santander, Scotiabank, Standard Chartered Bank, SMBC, Toronto-Dominion Bank, UBS and Westpac.
The loan pays a margin of 75 basis points (bps) over LIBOR, banking sources said.
Anglo American is rated BBB+ by Standard & Poor’s and Fitch, and Baa1 by Moody‘s. (Reporting by Alasdair Reilly; Editing by Helen Massy-Beresford)