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(Reuters) - Banks have been asked to gauge by the end of this week the appetite for a 1.5 billion-pound (£1.5 billion) syndicated loan to back the planned privatization of Britain's Royal Mail Group (IPO-RMG.L), banking sources said.
A group of around 10 banks are looking at the financing, which is expected to consist of a revolving credit facility and a term loan and will provide working capital to the group before its planned stock market flotation, two senior bankers said.
Royal Mail declined to comment.
The financing is at an early stage, and the timetable of the deal will be driven by the privatization, one of the bankers said.
Rothschild is advising Royal Mail on the financing, bankers said previously [ID:nL6N0DQ3GW].
Royal Mail's flotation is expected to take place this autumn. The group has 150,000 staff and annual sales of 9.5 billion pounds (£9.74 billion). British media reports have put a likely stock market value of between 2 billion pounds and 3 billion on the company.
Last December Royal Mail appointed Bank of America Merrill Lynch and Goldman Sachs to work alongside Barclays as its financial advisers. UBS has been advising the government.
($1=0.6638 British pounds)
(Additional reporting Alasdair Reilly; Editing by Greg Mahlich)
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Royal Mail sounds out market for £1.5 billion IPO loan
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Budfrog
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UnhappyGremlin
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Re: Royal Mail sounds out market for £1.5 billion IPO loan
Ask not for whom the bell tolls, it tolls for Royal Mail.
Sometimes, I wish I wasn't a Rep.
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Danelectro
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Re: Royal Mail sounds out market for £1.5 billion IPO loan
will any of the 10 banks be part of the bank bailout of 2008?
That would really take the biscuit,the estimated money that the banks involved still owe the UK tax payer is down to around 500 billion at best,there are no plans as yet to sell our state shares in these and when they do its likely it will be at a loss.The 2 to 3 billion to be raised by the sale of Royal Mail is small potatoes in comparison.
...Tax payers bailing out banks who could then use the money to privatise and purchase the tax payers assets like Royal Mail at a knockdown price..jobs a good un
That would really take the biscuit,the estimated money that the banks involved still owe the UK tax payer is down to around 500 billion at best,there are no plans as yet to sell our state shares in these and when they do its likely it will be at a loss.The 2 to 3 billion to be raised by the sale of Royal Mail is small potatoes in comparison.
...Tax payers bailing out banks who could then use the money to privatise and purchase the tax payers assets like Royal Mail at a knockdown price..jobs a good un