Pernod Tests Banks with Loan

The 12 billion euro ($19 billion) loan for Pernod Ricard's acquisition of Vin & Sprit is set to test the company's banking relationships, sources told Reuters today. The loan is the largest non-investment grade corporate loan in Europe. As a result, many consider it a test by for European lending as money remains scarce.Pernod will leverage its strong cash flow and consider selling some of its non-core brands or brands from V&S. Pernod has a strong borrowing track record and