Goldman, Banks Lend Record $55 Billion for BHP, Rio |
| Bloomberg - Feb 6, 2008 |
Goldman Sachs Group Inc., Citigroup Inc. and five other banks agreed to provide BHP Billiton Ltd. with a $55 billion loan, the biggest ever, to finance its bid for rival Rio Tinto Group.
The loan would top the previous record of 35 billion euros ($51 billion) borrowed by utility Enel SpA in Rome to buy Madrid-based power producer Endesa SA in April. BHP, the largest mining company, said yesterday it offered $147.4 billion for Rio Tinto. The Melbourne-based company hired Goldman, Citigroup and UBS AG as advisers when it first announced the bid in November.
The loan arrangers may struggle to find investors to participate in the deal as financial firms tighten lending after writing down $146 billion on losses stemming from the collapse of the U.S. subprime mortgage market. Banks are holding $160 billion of leveraged buyout loans that they can't sell, according to data compiled by Bank of America Corp.
Read Full Article from Bloomberg
- Posted: 2008-02-06 09:30:43
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