Magazine article American Banker

Fleet Arranges Credit to Issue Notes in Europe

Magazine article American Banker

Fleet Arranges Credit to Issue Notes in Europe

Article excerpt

CHICAGO -- Fleet Financial Group Inc. has arranged a $100 million, five-year facility, which will allow it to issue short-term notes in Europe.

Fleet's assistant treasurer, John Rodehorst, explained that the short-term note issuance facility operates in much the same way as a revolving underwriting facility, except for a few technical differences.

Fleeths facility is backed with a commitment from 16 banks, with Chase Manhattan Capital Markets Group acting as syndicate manager and Manufacturers Hanover Ltd. handling the agent's role.

Other participants in the facility are Algemene Bank Nederland NV, Banco di Roma, Bank of Ireland, Bank of Montreal, Bank of Nova Scotia International Ltd., Bank of Tokyo Ltd., Credit Durord, Deutsche Genossenschafts-bank, Kansallis-Osake-Pankki, Mitsubishi Trust and Banking Corp., Sanwa Bank Ltd., State Bank of New South Wales, Sumitomo Bank Ltd., and West-Pac Banking Corp.

Fleet, a Providence, R.I., financial services company, intends to use the facility for general corporate purposes, Mr. Rodehorst said.

Under the agreement, the maximum rate Fleet Financial will have to pay on the notes is the London interbank offered rate plus one-eighth of a percent, he said. At the point when Fleet wants to raise funds through this facility, it will offer the notes for bid to a tender panel of 23 financial institutions. Behind the tender panel stands the 16-bank syndicate's commitment to buy any unbid portion of the notes for no more then the stated maximum.

A majority of the banks in the commitment are also on the tender panel, Mr. …

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