Dubai Duty Free repricing $1.75bn loan
London, June 28, 2013
Airport retailer Dubai Duty Free (DDF) is set to reprice a $1.75 billion, six-year syndicated loan that signed in July 2012, banking sources close to the deal said.
The original loan was split between a dirham-denominated tranche and a US dollar denominated facility, which were both priced at 325 bps (basis points) over Libor.
As part of the repricing exercise, margins will be reduced by 100 bps on the dirham-denominated tranche and by 75 bps on the US dollar tranche, the sources said.
"Pricing in the loan market in the UAE is now coming in," said one of the banking sources. "This is just a mark to market exercise."
The repricing for the world's largest single airport retailer is expected to close next week.
The original senior unsecured financing was led by coordinators, mandated lead arrangers and bookrunners Citibank, Dubai Islamic Bank, Emirates NBD and HSBC Bank Middle East. Abu Dhabi Commercial Bank pre-committed to the facilities as a mandated lead arranger and bookrunner.
DDF was established in 1983 as the sole duty free operator at the departure and arrival areas of all terminals at DIA.
DDF could not be reached for comment. - Reuters