Wednesday, November 28, 2007

BHP is getting loanly in its attempt to buy Rio Tinto

If the $7.5 Billion loan to Citigroup from Abu Dhabi is a big deal(OK, it's a preferred stock deal, but let's not get pedantic), which caused stock markets around the globe to bob to the surface and the US market to put in a 200+ point rally,what kind of a deal is it for BHP to borrow $70 Billion? And how will the markets react to that?

RLPC-Seven lead $70 bln loan for Billiton's Rio bid -sources By Tessa Walsh
The financing, which is likely to be the European syndicated loan market's largest-ever loan to date, is being led by co-ordinator Goldman Sachs (GS.N: Quote, Profile , Research) and mandated lead arrangers Barclays (BARC.N: Quote, Profile , Research), BNP Paribas (BNPP.PA: Quote, Profile , Research), Citigroup (C.N: Quote, Profile , Research), HSBC (HSBA.L: Quote, Profile , Research)(0005.HK: Quote, Profile , Research), Santander (SAN.MC: Quote, Profile , Research) and UBS (UBSN.VX: Quote, Profile , Research), banking sources told Reuters Loan Pricing Corp (RLPC).

"We have already raised it (the money). The deal is done," a banker close to the deal said.
Is this another of those market top/bottom show-stopping events, or just another routine rung up in the commodity super-cycle?


Hey! Pay attention here! Guambat wants some answers.

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