Bright seeks loan to purchase Weetabix
Source: Bloomberg News |
August 7, 2012, Tuesday
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Print Edition
Print Edition
CREDIT Agricole SA, Rabobank International and HSBC Holdings Plc are considering lending to a facility for Bright Food Group Co even though the loan offers no fees, three people familiar with the matter said.
Bright Food is seeking a US$800 million loan to fund its purchase of a 60 percent stake in Weetabix Ltd, the people said, asking not to be identified because the details are private. The loan will have a maturity of three years, another person familiar with the matter said on June 25.
Bright Food, based in Shanghai, is offering the lenders a margin of 230 basis points over the London interbank offered rate and zero fees, the people said yesterday. Although several banks have decided not to participate due to the lack of incentives on offer, HSBC, Credit Agricole and Rabobank may be willing to accept a so-called all-in rate of 230 basis points to build a relationship with the company, the people said. Bright Food is seeking a minimum bank commitments of US$20 million at that price, the people said.
Bright Food agreed to buy a 60 percent stake in British cereal maker Weetabix from private equity firm Lion Capital LLP in May as part of a drive to increase overseas sales.
The Chinese food company and provider of agriculture products including dairy cows and pigs said in a May 3 statement the deal values Weetabix, the maker of Ready Brek and Alpen cereals, at 1.2 billion pounds (US$1.9 billion).
Bright Food last year agreed to buy 75 percent of Australia's Manassen Foods from Champ Private Equity.
Bright Food is seeking a US$800 million loan to fund its purchase of a 60 percent stake in Weetabix Ltd, the people said, asking not to be identified because the details are private. The loan will have a maturity of three years, another person familiar with the matter said on June 25.
Bright Food, based in Shanghai, is offering the lenders a margin of 230 basis points over the London interbank offered rate and zero fees, the people said yesterday. Although several banks have decided not to participate due to the lack of incentives on offer, HSBC, Credit Agricole and Rabobank may be willing to accept a so-called all-in rate of 230 basis points to build a relationship with the company, the people said. Bright Food is seeking a minimum bank commitments of US$20 million at that price, the people said.
Bright Food agreed to buy a 60 percent stake in British cereal maker Weetabix from private equity firm Lion Capital LLP in May as part of a drive to increase overseas sales.
The Chinese food company and provider of agriculture products including dairy cows and pigs said in a May 3 statement the deal values Weetabix, the maker of Ready Brek and Alpen cereals, at 1.2 billion pounds (US$1.9 billion).
Bright Food last year agreed to buy 75 percent of Australia's Manassen Foods from Champ Private Equity.
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