Vivendi SA, owner of the world's largest video-game maker, is being asked by lenders to increase the interest margin of a new credit line, according to three people with knowledge of the deal.
Banks are demanding the Paris-based company pay interest of 90 basis points on money it borrows under the five-year 1 billion-euro ($1.3 billion) facility, said the people, who didn't want to be identified because talks are private. It offered a margin of 75 basis points.
French companies are rushing to refinance as Europe's spreading sovereign crisis endangers France's top credit rating. Deals from Carrefour SA and Alstom SA last month pushed the amount of French loans to $92 billion this year, compared with $49 billion a year earlier, according to data compiled by Bloomberg.
Complete your profile to continue reading and get FREE access to Treasury & Risk, part of your ALM digital membership.
Your access to unlimited Treasury & Risk content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Thought leadership on regulatory changes, economic trends, corporate success stories, and tactical solutions for treasurers, CFOs, risk managers, controllers, and other finance professionals
- Informative weekly newsletter featuring news, analysis, real-world case studies, and other critical content
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the employee benefits and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
