Noble Group (NOBG.SI) is seeking an extension to its US$800 million loan facility completed last year, and could increase it and push for lower pricing, banking sources said today.

Under the terms of the outstanding two-year revolving letter of credit and guarantee facility signed in late May 2009, the global commodities trader has an option to extend the deal’s maturity by a year to 2012 at a reduced size of US$770 million ($1.08 billion).

However, due to improving market confidence, Noble has been in talks with the existing lenders to explore alternatives when it exercises the extension option.

The alternatives include increasing the facility to as much as US$1 billion and lowering the pricing to the low- to mid-100s from its current 159.5 basis points blended all-in. All the lenders would have to agree with those alternatives.

The borrower is still receiving feedback from banks and a formal request for proposals is expected in mid-April, the sources said.