Peninsular & Orient Dubai Ports World seeks 6.5 bln usd loan to fund P&O acquisition
DUBAI (AFX) - Dubai Ports World will borrow 6.5 bln usd to finance its
acquisition of UK port and ferries group Peninsular & Oriental Steam Navigation
Co, the company said Saturday.
DP World has mandated
Barclays Capital and
Deutsche Bank to "arrange
facilities totaling 6.5 bln usd incorporating a 6.3-bln-usd (syndicated) term
loan facility and a 200-mln-usd revolving credit facility for working capital
purposes ... to finance acquisition of Peninsular and Oriental Steam Navigation
Company," the statement said.
The five-year facilities will also be used to "refinance existing
indebtedness," it said.
Barclays Capital is the investment banking division of Barclays Bank, which
along with Deutsche Bank has underwritten the facilities.
Syndication of the facilities will begin next week, with bank meetings
planned in Dubai on Feb 23 and in London on Feb 27.
DP World's acquisition of P&O will make it one of the three largest
container ports businesses worldwide, the statement added.
P&O shareholders approved last week a 6.8-bln usd-dollar takeover bid by DP
World.
http://freeserve.advfn.com/news_Dubai-Ports-World-seeks-6-5-bln-usd-loan-to-fund-P-O-acquisition_14254292.htmlWhat do we know about the Committee on Foreign Investment in the United States, which is headed by
the Treasury Department, which approved the deal?
Deals like this fall all the time, buckle under pressure, especially if it can be shown that the takeover company doesn't have sufficient funds or holdings to justify the debt.