Trading house Noble Group is under no pressure from banks to sell assets and is not planning further divestments as it negotiates more than US$4 billion of new and refinanced loans with lenders, a senior source close to the process said.
The renewal of Noble's loans is seen by analysts as the most significant development this year for the trader of commodities ranging from iron ore to oil, after suffering a slide in investor confidence over the past year.
Ratings agencies downgraded Noble to “junk” status last year after an analyst accused it of accounting irregularities and commodity prices slumped.
In January, Noble reported its first annual loss in nearly 20 years and ratings agency Standard & Poor's said that could complicate refinancing.
This week, Noble surprised the market with bigger refinancing plans than expected. Sources said it was seeking US$2.5-$3.25 billion ($3.4-$4.5 billion) via an oil inventory-backed loan to replace an existing US$1.1 billion facility. It is also seeking up to US$2.2 billion through a revolving credit facility to replace an existing US$1.2 billion loan.
Several industry and banking sources have suggested Noble may try to provide banks with comfort by promising more assets sales, such as its highly profitable Noble Americas Energy Solutions business.
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The renewal of Noble's loans is seen by analysts as the most significant development this year for the trader of commodities ranging from iron ore to oil, after suffering a slide in investor confidence over the past year.
Ratings agencies downgraded Noble to “junk” status last year after an analyst accused it of accounting irregularities and commodity prices slumped.
In January, Noble reported its first annual loss in nearly 20 years and ratings agency Standard & Poor's said that could complicate refinancing.
This week, Noble surprised the market with bigger refinancing plans than expected. Sources said it was seeking US$2.5-$3.25 billion ($3.4-$4.5 billion) via an oil inventory-backed loan to replace an existing US$1.1 billion facility. It is also seeking up to US$2.2 billion through a revolving credit facility to replace an existing US$1.2 billion loan.
Several industry and banking sources have suggested Noble may try to provide banks with comfort by promising more assets sales, such as its highly profitable Noble Americas Energy Solutions business.
Click Here To Register For Free Trial Services OR Give A Missed Call : +6531581402 Follow Us On Twitter : www.twitter.com/epicresearchsg Like Us On Facebook : www.facebook.com/EpicResearchSingapore Need Any Assistance Feel Free To Mail Us at : info@epicresearch.sg
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