America Movil Pricing Expected Tight

Market participants expect the pricing of the America Movil $4bn syndicated loan to be tighter than the Vale loan. Banks that pitched for Vale and did not win are expected to bid aggressively for the America Movil mandate. “The market is very liquid and there is still a lack of assets,” says one syndicated loans banker. Another says that since Vale’s $3bn, 5-year syndicated loan is offering a spread of 65bp over Libor, pricing for the portion of the America Movil loan with a 5-year tenor could come between 50bp and 60bp over Libor, as it has a higher credit rating than Vale. America Movil’s credit rating is A minus and Vale’s is BBB+. America Movil is looking at proposals for a 3-year and a 5-year tenor for a revolver, either in USD or a combination of USD and EUR. It is expected to choose banks this month, with a transaction expected to be signed by April.