Faurecia has strengthened its liquidity by EUR800m (US$870m) to face any potential scenario related to the Covid-19 crisis.
The supplier has signed a Club Deal of EUR800m with four of its main banks: BNP Paribas; CA-CIB; Société Générale and Natixis, with the following conditions:
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- Maturity: 18 months (12 months plus six months option at Faurecia’s initiative)
- Senior unsecured loan, un-guaranteed, pari passu with the rest of the Group’s long-term debt
- Drawn on 17 April, 2020
The EUR800m is in addition to the EUR600m not drawn from the EUR1.2bn syndicated credit line (maturity: June, 2024) of which half was recently drawn, in anticipation of the expected decline in factoring of receivables.
With EUR1.4bn of available liquidity, in addition to its current cash position, Faurecia says it estimates it will be able to cope with any scenario related to the Covid-19 pandemic.
“Since the beginning of the crisis, we have taken all necessary measures to strengthen our liquidity and be able to pass the peaks of cash requirements we will have to face, including in the most demanding scenarii,” said Faurecia CFO, Michel Favre.
“The signing of this Club Deal is part of our financial strategy in the face of the crisis and demonstrates the confidence of our banks in the quality of our signature and our ability to weather this global crisis.”
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