Chillin' out till it needs to be funded
SAN FRANCISCO MarketWatch — Japans three top banking groups are reportedly lead-managing a 40 billion yen $425 million syndicated loan on behalf of McDonalds Corp., in what would be the latest loan extended to a global company seeking funding in Tokyo amid the ongoing credit crisis. The company MCD is tapping the loan for business operations, but it may not necessarily use the funds in Japan, Japanese business daily Nikkei said on its Web site in a report dated Friday. As U.S. and European lenders became more cautious about extending loans in the first half of last year, Japanese banks oversaw large syndicated loans extended to such major foreign companies as IBM Corp. IBM and Swedens AB Volvo UK:0HTP McDonalds sales and profit have remained on track despite the global economic downturn, as consumers have “traded down.” The Oak Brook, Ill.-based fast-food chain said that global same-store sales — receipts for outlets open at least a year — rose by 7.1% in January. Systemwide sales for McDonalds restaurants around the world were up 2.6% for the month. Without the impact of a strengthening dollar, Januarys sales growth would have been 9.1%, the company said. Read more on McDonalds sales. McDonalds Holdings Co. Japan JP:2702 posted record sales of 406.3 billion yen in the 2008 calendar year, up 2.9% despite the recession casting a shadow across the No. 2 global economy. The yen-denominated loan was organized by Mizuho Corporate Bank, a unit of Mizuho Financial Group Inc. MFG; Sumitomo Mitsui Banking Corp., an arm of Sumitomo Mitsui Financial Group Inc. SMFJ.Y and Bank of Tokyo-Mitsubishi UFJ, part of Mitsubishi UFJ Financial Group Inc. MTU. Regional lenders were among the nine other participants, Nikkei said. The 62-month loan was initiated at the end of last month. Interest rates and other terms have not been disclosed, according to the Japanese media report. via McDonalds reportedly in $425 million Japanese loan pact – MarketWatch .