PSA seeking US$1b refinancing for stake in Hutchison
PSA International Pte Ltd, the second-largest container port operator, plans to borrow US$1 billion to help refinance debt it raised for a stake in Hutchison Port Holdings, said three people involved in lender negotiations.
PSA asked banks to bid for a three-year loan to help refinance some of the US$3.42 billion loans it agreed to in May 2006 when it bought 20 per cent of Hong Kong-based Hutchison Port, said the people, who declined to be identified because the information isn't public.
Banks approached by PSA are asking the Singapore-owned company to pay interest of at least 100 basis points more than the London interbank offered rate, the people said.
Through its Asia Lion International Ltd unit, PSA paid 20 basis points over benchmark rates for the Hutchison loans due May 2009 and 30 basis points for loans due May 2013, data compiled by Bloomberg shows. A basis point is 0.01 of a percentage point.
PSA's 2007 profit increased 59 per cent as demand for Asian-made goods in the US and Europe boosted shipping traffic.
Neptune Orient Lines Ltd, South-east Asia's biggest container shipping line, last month said that traffic declined for the first time in almost three years in the four weeks ended on Oct 17 because of slowing demand for goods shipments.
Barclays Capital, DBS Group Holdings Ltd and Royal Bank of Scotland Group Plc helped PSA get its 2006 loans, Bloomberg data shows.
Samantha Tan, deputy manager at PSA's corporate affairs department, said that the company had no comment when contacted by Bloomberg News yesterday.
PSA asked banks to bid for a three-year loan to help refinance some of the US$3.42 billion loans it agreed to in May 2006 when it bought 20 per cent of Hong Kong-based Hutchison Port, said the people, who declined to be identified because the information isn't public.
Banks approached by PSA are asking the Singapore-owned company to pay interest of at least 100 basis points more than the London interbank offered rate, the people said.
Through its Asia Lion International Ltd unit, PSA paid 20 basis points over benchmark rates for the Hutchison loans due May 2009 and 30 basis points for loans due May 2013, data compiled by Bloomberg shows. A basis point is 0.01 of a percentage point.
PSA's 2007 profit increased 59 per cent as demand for Asian-made goods in the US and Europe boosted shipping traffic.
Neptune Orient Lines Ltd, South-east Asia's biggest container shipping line, last month said that traffic declined for the first time in almost three years in the four weeks ended on Oct 17 because of slowing demand for goods shipments.
Barclays Capital, DBS Group Holdings Ltd and Royal Bank of Scotland Group Plc helped PSA get its 2006 loans, Bloomberg data shows.
Samantha Tan, deputy manager at PSA's corporate affairs department, said that the company had no comment when contacted by Bloomberg News yesterday.