$12 Billion Credit Facility Closed for Worldcom Inc.

Strategic Insights -

The recent jumbo $12 billion credit facility arranged by Lead arranger and administrative agent NationsBank for Worldcom Inc. has attracted a significant number of lenders, bringing together a syndicate group of 82 participants, including both existing lenders and new ones. The facility features a combination of a 364-day revolving credit, a four-year revolving credit, and a four-year term loan, with various pricing and commitment fee structures for the different components. The deal also includes co-syndication agents from prominent financial institutions and a range of lenders from across the globe.

Key Takeaways:

  • The $12 billion credit facility was arranged by Lead arranger and administrative agent NationsBank for Worldcom Inc.
  • The facility features a 364-day $7 billion revolving credit, a four-year $3.75 billion revolving credit, and a four-year $1.25 billion term loan.
  • The syndicate group consists of 82 lenders, including participants from the previous facility and new lenders.
  • Co-syndication agents include BankAmerica, Barclays Capital, Chase Manhattan, Citibank, J.P. Morgan, and Royal Bank of Canada.
  • Pricing for the 364-day revolving credit opens at Libor plus 16 basis points with a commitment fee of nine basis points.
  • Pricing for the four-year revolving credit and term loan opens at Libor plus 14 basis points with a commitment fee of 11 basis points.
  • The deal includes a utilization fee of five basis points at 33% usage and 10 basis points at 66% usage.
  • Lenders involved in the deal include a diverse range of financial institutions and banks from around the world.

Statistics:

  • Total facility size: $12 billion
  • Revolving credit 1 size: $7 billion (364-day)
  • Revolving credit 2 size: $3.75 billion (four-year)
  • Term loan size: $1.25 billion (four-year)
  • Number of lenders: 82
  • Pricing for 364-day revolving credit: Libor plus 16 basis points with a commitment fee of nine basis points
  • Pricing for four-year revolving credit and term loan: Libor plus 14 basis points with a commitment fee of 11 basis points
  • Utilization fee at 33% usage: five basis points
  • Utilization fee at 66% usage: ten basis points

Sources:

  • Grid-based pricing on the one-year piece (original text)
  • NationsBank, Lead arranger and administrative agent (original text)
  • Worldcom Inc., borrower (original text)