Telemar Seeks 3 on Revolver

Leads on Telemar’s $1.5bn 5-year revolver are still looking for three banks to participate as joint bookrunners with tickets of $200m a piece before launching into general syndication. Margins are tied to a leverage grid at Libor+90bp out of the box for a BBB/Baa2 rating, 115bp if ratings drop to BBB minus and 150bp if the credit becomes junk, says a banker considering the trade for the telecoms company. Bankers will be paid 15bp on top of the base margin if more than a third of the revolver is drawn, and an additional 30bp if over two-thirds are drawn. Leads Bank of America Merrill Lynch, Citigroup and RBS are heard committing to $500m each, but will see those levels reduced to $300m once the sub-underwriters come on board. Pricing is more or less in line with conglomerate Votorantim’s $1.5bn 5-year senior revolving credit facility, which was also tied to a ratings grid and out of the box offered Libor+85bp if proceeds were used for trade purposes and Libor+90bp for working capital.