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West LB and Lloyds Bank launched syndication last week on a L175 million ($281.7 million) revolving facility for Leeds & Holbeck Building Society, market sources said. The credit is structured in three tranches with forty percent maturing in five years and thirty percent maturing in each of years six and seven.
The margin is split at LIBOR plus 0.19% for the five-year piece, stepping up to LIBOR plus 0.21% for the six-year and LIBOR plus 0.23% for the seven-year piece. Commitment fees will be awarded based on a similar time grid: for the five-year, 8.75 basis points; for the six-year, 9.25 basis points; and for the seven-year, 10 basis points.
The arrangers are offering participation fees of five and nine basis points for commitments of L5 million and L10 million, respectively.
Leeds & Holbeck will use the proceeds of the new facility for general corporate funding and to refinance a L110 million revolving credit facility arranged by Fuji Bank in 1991.
* Syndication on the L750 million ($1.2 billion), five-year revolver for British Aerospace plc has flown through the market, already receiving more than the desired commitment amount, market insiders said last week.
The deal has gone so well that arrangers Barclays de Zoete Wedd, J.P. Morgan, Lloyds Bank, Midland Bank and...