Bright Food said to offer fees on Weetabix deal loan
(China Daily) Updated: 2012-09-21 12:53
China's Bright Food Group Co is believed to be changing the financing arrangements on its planned acquisition of a majority stake in Weetabix Ltd.
According to industry sources, the company now plans to pay fees on a loan backing the acquisition plus a margin totaling about 230 basis points, the sources said.
The company originally offered to pay zero fees to potential lenders and a margin of 230 basis points.
Calls made to confirm the new arrangement, to the offices of Bright Food in Shanghai, went unanswered.
The Shanghai-based food manufacturer, which is seeking about $800 million in financing to back the deal, is believed to be considering issuing a $300 million bond as part of the financing and fund the remainder with bank loans.
China Daily -Agencies
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