Magazine article American Banker

Citi Fends off NationsBank to Win Deal

Magazine article American Banker

Citi Fends off NationsBank to Win Deal

Article excerpt

City fought off a challenge from NationBank to lead a new $500 million credit for Carnival Cruise Lines, market sources said.

Citibank traditionally has served as lead bank for the Miami-based company, so the loss of the Carnival business would have been a blow.

NationalBank, which also has a lending relationship with Carnival, has been bidding aggressively to win new lending mandates.

A NationsBank account officer in Miami declined to comment on the new credit. NationsBank's syndicate chief at the bank's headquarters in Charlotte, N. C., did not return a phone call for comment.

It was not immediately clear whether other banks also bid to lead the new credit.

Syndication Materials Prepared

Citibank was in the process Wednesday of distributing terms and related information on the credit to potential syndicate member, so market information about the deal was scarce.

The new five-year credit replaces $500 million of existing Citibank-led credit lines, including a $300 million multiyear revolver that was put in places less than a year ago.

With half a dozen new ships on order, including two for its Holland America subsidiary, Carnival faces outlays of over $1 billion over the next four years, said John Maxwell, an analyst at Standard & Poor's Corp.

The new deal effectively extends the maturities of the existing credit lines. The $300 million revolver was scheduled to expire in 1995, while the new credit line will expire in 1998. …

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