Nestle Borrows at 4-Year Low

Big companies, flush with cash, still well-placed to pay off debt.

Nestle, the world’s biggest food company, won the lowest rate on a European company loan in four years amid speculation larger companies are better able to withstand a stagnant economy.

The maker of Nescafe and KitKat chocolate bars agreed to pay 10 basis points more than the euro interbank offered rate to draw a 4 billion-euro ($5.4 billion) one-year revolving credit, according to data compiled by Bloomberg. That’s the lowest interest margin since a $2.25 billion deal for chemicals maker BASF SE in April 2007, according to data compiled by Bloomberg.

Copyright 2016 Bloomberg. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.


Advertisement. Closing in 15 seconds.