MNC Financial Inc. has formally locked into place a previously announced, $750 million line of credit that the Baltimore-based company is expected to use to meet short-term funding requirements.
The 18-month line of credit, part of an infusion of capital designed to help the troubled bank holding company's equity position, is being funded by a syndicate of nine banks led by Morgan Guaranty Trust Co., of New York.
MNC spokesman Daniel Finney described the new credit as a "back up" for the company's commercial paper. It replaces a $570 million line of credit that will be allowed to expire. Unlike the previous line of credit, the new one cannot be canceled, he said.