Embattled Noble seeks US$2.5b new loan to pay off old debt

It’s trying to refinance two credit facilities.

Beleaguered Noble Group may finally be on its last legs, as reports say the group’s US arm is attempting to secure financial assistance.

Citing a Bloomberg report, OCBC says that Noble Americas is holding a bank meeting in the US today for a 364-day credit facility guaranteed by Noble Group.

The tranches are for US$1b uncommitted, and US$1.5b committed lines. Opening pricing, based on Ba3/BB- ratings, are for L+160 bps and L+170. However, if ratings get a downgrade, the pricing climbs up to L+185 and L+195.

“Bloomberg notes that the move is to refinance two credit facilities, including a US$1.1b letter of credit facility, due in July,” states OCBC.

Further, while management noted that secured funding is cheaper, it does not think an investment grade is a priority at this stage.