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Rhone-Poulenc Rorer has secured facilities totalling $4.3 billion from three French banks, backing its hostile takeover attempt of Fisons plc. Banque Nationale de Paris, Credit Lyonns and Societe Generale reportedly signed bilateral agreements with the American subsidiary of French pharmaceutical giant Rhone-Poulenc S.A. in the weeks leading up to RPR's L1.7 billion ($2.6 billion) bid.
BNP has committed $1.7 billion through an existing loan facility with the company. Credit Lyonnais has stepped in with $1.5 billion. Societe Generale has committed $1.1 billion. The facilities may be drawn in dollars, French francs, marks or sterling, said a source. Pricing, based on the creditworthiness of RPR with no guarantee from the parent, was not disclosed.
According to Philippe Maitre, vice-president and corporate treasurer at RPR, the three banks plan to hold their total committed amount and will not syndicate the credits. He said that the amount of the bilateral lines reflects the capital needed for the bid and to comply with U.K. regulations requiring bidders to secure all of their debt and preferred stock.
Mr. Maitre would not comment further on the structure of the bilateral lines or whether the company plans to take out the credits with a...