October 29 news, according to Reuters, sources revealed that Lenovo Group is in talks with banks for a $1.5 billion loan case. Previously, the Wall Street Journal reported that Lenovo is considering acquiring BlackBerry.
The source said that more than 10 banks are interested in participating in this deal. This loan is for a five-year term and is reportedly intended for Lenovo's "general corporate purposes."
The source indicated that this loan will likely resemble the $500 million loan Lenovo signed in January 2011. That five-year revolving loan had an interest rate of 137.5 basis points over the London Interbank Offered Rate (Libor), with a maximum overall yield of 157.5 basis points.
In June 2012, Right Lane Ltd., a subsidiary of Lenovo, finalized a three-year $300 million term loan. The interest rate was set at 265 basis points over Libor/Hong Kong Interbank Offered Rate (Hibor), with a maximum overall yield of 290 basis points. This loan was guaranteed by Lenovo Holdings, the parent company of Lenovo, and Right Lane Ltd.