Hyundai Capital America seeking $1.2 billion credit line
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LONDON (Reuters) - Hyundai Capital America, the U.S. auto finance unit of Hyundai Motor Co., has asked banks for proposals for a new $1.2 billion three-year revolving credit line.
California-based HCA is an indirect, majority-owned subsidiary of HMC. It provides financing for the acquisition of Hyundai and Kia cars by U.S. dealers and consumers through dealer floor plan arrangements, retail installment contracts, and leases.
International banks have been invited to bid on the global deal, which will mainly target North American lenders, the source added. Four to five banks are already involved in the deal another source said. HCA is hoping to complete the deal by the end of the year.
U.S. subsidiary HCA has the same rating as parent HMC which will allow it to raise funds at a similarly competitive level.
Both companies are rated BBB+ by S&P and Baa1 by Moodys after Moody's upgraded HCA's rating from Baa2 on November 2 and revised its outlook from stable to positive.
U.S. subsidiary HCA was last in the loan market for a $150 million three-year loan in December 2010.
HMC increased quarterly net profit by 13 percent to $2 billion, Reuters reported on October 25.
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