Issuer: ELoC 16
Size: £813 million
Type: 30-year bond
Lead manager: Morgan Stanley
The market-leading status of Morgan Stanley's
European Loan Origination Conduit (ELoC) product has enabled
the bank to bring the BBC to the bond markets for the first
time in the broadcaster's history.
The BBC, whose on-balance-sheet borrowings from the UK
government cannot exceed £200 million ($320 million) under the
terms of its Royal Charter, needs the cash to redevelop its central
London headquarters, Broadcasting House. After talking to another
bank about borrowing bank debt for a PFI/PPP-style deal, the BBC
heard Morgan Stanley's pitch on April 1.
Morgan Stanley argued that the corporation could tap the bond
markets for cheaper funding if a loan from the bank to finance a
lease-and-leaseback transaction was repackaged and sold...
