San Francisco Chronicle
Friday, August 13, 2010
Aug. 13 (Bloomberg) — Credit-default swaps linked to Royal Dutch Shell Plc fell to the lowest in two weeks after Europe’s largest oil company said it obtained $5.1 billion of credit lines to refinance debt.
Contracts on Shell fell 2 basis points to 76.3, the lowest since July 29 and the first decline since Aug. 9, according to data provider CMA. Swaps are used to speculate on a company’s ability to repay debt and fall when perceptions of credit quality improve.
Shell, based in the Hague, said yesterday it agreed a five- year revolving credit line to refinance a $2.5 billion facility expiring in April 2012. It didn’t disclose the interest margin or lenders.
The average interest rate Shell pays in 2010 for floating- rate debt in dollars fell to 1.3 percent from 3.8 percent two years ago, according to filings. Debt increased to $40 billion at the end of June from $30 billion a year earlier, Shell said in its second-quarter earnings statement July 29. Net income rose 15 percent to $4.4 billion, helped by higher oil prices.
Standard & Poor’s rates Shell’s debt AA, the third-highest investment grade. Moody’s Investors Service ranks it a step higher at Aa1, in line with Fitch Ratings’ assessment of AA+.
ABN Amro Bank NV, Barclays Capital, Citigroup Inc., Deutsche Bank AG, HSBC Holdings Plc, Lloyds Banking Group Plc, Merrill Lynch & Co., Royal Bank of Scotland Group Plc, Societe Generale SA, and UBS AG arranged the $2.5 billion facility in 2005, according to data compiled by Bloomberg.
A basis point on a credit-default swap protecting 10 million euros ($13 million) of debt from default for five years is equivalent to 1,000 euros a year.
–Editors: Cecile Gutscher, Michael Shanahan
Royal Dutch Shell conspired directly with Hitler, financed the Nazi Party, was anti-Semitic and sold out its own Dutch Jewish employees to the Nazis. Shell had a close relationship with the Nazis during and after the reign of Sir Henri Deterding, an ardent Nazi, and the founder and decades long leader of the Royal Dutch Shell Group. His burial ceremony, which had all the trappings of a state funeral, was held at his private estate in Mecklenburg, Germany. The spectacle (photographs below) included a funeral procession led by a horse drawn funeral hearse with senior Nazis officials and senior Royal Dutch Shell directors in attendance, Nazi salutes at the graveside, swastika banners on display and wreaths and personal tributes from Adolf Hitler and Reichsmarschall, Hermann Goring. Deterding was an honored associate and supporter of Hitler and a personal friend of Goring.
Deterding was the guest of Hitler during a four day summit meeting at Berchtesgaden. Sir Henri and Hitler both had ambitions on Russian oil fields. Only an honored personal guest would be rewarded with a private four day meeting at Hitler’s mountain top retreat.
IN JULY 2007, MR BILL CAMPBELL (ABOVE, A RETIRED GROUP AUDITOR OF SHELL INTERNATIONAL SENT AN EMAIL TO EVERY UK MP AND MEMBER OF THE HOUSE OF LORDS: 
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A head-cut image of Alfred Donovan (now deceased) appears courtesy of The Wall Street Journal.
