LONDON, Oct 17 (Reuters) - Nestle has closed a 6 billion euro ($7.65 billion) refinancing of its 5 billion euro, 364-day revolving credit facility that was agreed in October 2013, banking sources said.
The self-arranged financing was increased from a launch amount of 5 billion euros after closing oversubscribed, the sources said.
Nestle declined to comment.
Nestle has secured very similar terms to last year’s financing, which paid a margin of 10bp over Euribor and a 1bp commitment fee.
AA/Aa2/AA+ rated Nestle has consistently achieved the lowest pricing in the European loan market due to its high credit rating and the amount of ancillary business that the global company can offer its lenders.
Last year’s financing comprised two 5 billion euro equivalent revolving credits which could be drawn in dollars and euros. One of the loans was the 364-day maturity, which had a one-year extension option, while the other was a five-year facility that incorporated a $2.5 billion swingline facility.
The five-year loan paid 12.5 bps over Euribor with a 3.75bp commitment fee. (1 US dollar = 0.7841 euro) (Editing by Christopher Mangham)