CarVal charging 14.5% above LIBOR for Lifemark loan

Laura Miller
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CarVal, the US hedge fund, will charge cash-starved Keydata-backer Lifemark 14.5% above LIBOR for its ‘rescue' loan.

The rate, which is double the average yield on European high yield bonds, suggests CarVal believes Lifemark is a very high-risk investment. CarVal has not disclosed the size of the short-term credit facility it will make available to Lifemark, though sources close to the situation say it is between $7.5m and $10m (£4.75m - £6.3m). Norwich & Peterborough Building Society (N&P), which has 3,100 customers invested in Lifemark through Keydata products, has also committed £1.5m to the facility at an undisclosed interest rate "commensurate with the risk profile of the loan". The terms of...

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