RLPC-Cadbury seeking forward start loan - bankers

LONDON, June 4, (Reuters) - British confectionary firm Cadbury Plc (CBRY.L: Quote, Profile, Research) is seeking to extend part of a 1 billion pound ($1.64 billion) revolving credit facility which is due to mature in March 2010, banking sources said on Thursday.

Discussions over the forward-start facility are ongoing, one of the sources said.

Forward-start agreements ensure access to liquidity for companies facing loan maturities. Lenders agree loans now to replace existing loans when they mature in return for increased fees and margins.

In January, Cadbury agreed a new 300 million loan covering the period of the sale of its Schweppes Australia unit.

The unit was sold in April to Asahi Breweries for approximately 550 million pounds generating proceeds of around 475 million pounds.

Cadbury spun off its North American beverage business Dr Pepper Snapple last May, and agreed in December to sell its Australian beverage business to complete its exit from soft drinks and to focus exclusively on confectionery.

(Reporting by Alasdair Reilly; Editing by Erica Billingham)