Were not disclosed. Hopefully we get them tomororw. However I am sure that the one year loan for $1.5B is at only a few percent. SLW has a stellar credit rating and rates are near zero. I wouldn't be surprised if they got it for maybe 2%.
The five year revolving credit line will cost a little more but it too is probably at only a few percent. It is probably about 3% over Libor.
With cash flow of nearly $1B/yr SLW can repay these loans quickly or they can tap deeper into the line of credit for another large deal though not nearly as big as this one. Regardless the interest costs will be small.
The real risk is simply that if such a large deal goes bad it will really hurt the company. But how many bad deals has our management team made?
IMO only the P-L deal looks shaky due to capex over runs, water issues, etc. Once it gets into production we should be fine but it is taking longer and costing more to get this one going.
Sure I'd prefer we do four $500 deals to one $2B deal but I also trust our management as being good stewards of our capital. They have earned my trust. I have no reason to 2nd guess them at this time.