America Movil Launches Syndication

America Movil´s $4bn dual tranche loan is being well received following bank meetings in New York on Thursday and in Mexico last Friday. The spread on the $2bn 3.5-year loan is 50bp over Libor, with a 15bp commitment fee, while the spread on the $2bn EUR equivalent 5 year-loan is 60bp over Euribor, with a 20bp commitment fee, according to bankers with knowledge of the transaction. The bookrunners on the first tranche are Bank of Tokyo Mitsubishi, BBVA, Citi, Intesa and Mizuho. Bookrunners on the second tranche are Bank of Tokyo Mitsubishi, Citi, Intesa, JPMorgan and Societe Generale. The banks have committed $400m each. HSBC is acting as lead arranger, but not as bookrunner. There is also a utilization fee of 15bp if America Movil draws down over 50% of the loan. Although participating bankers say the fees are tight, they are still willing to participate due to a lack of loans transactions in the market. “The only banks that may have a problem with participating are those not registered in Mexico,” says one New York-based syndicated loans banker. “It has high revenues and a major presence in LatAm, as well as having a lot of cash on the balance sheet so we do not really expect the facility to be drawn down,” says another syndicated loans banker, also in New York.