Supplier Schaeffler has completed a new credit agreement of EUR8.0bn with eight banks, replacing existing arrangements with four dating from November 2009.
“The improved capital structure gives Schaeffler additional headroom for the further successful development of the group, a company statement said.
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The new credit line of EUR8.0bn replaces the existing arrangement for EUR7.7bn ending in June 2014. The new arrangement includes term loans for EUR7.0bn and a revolving credit facility of EUR1.0bn. The term loans have staggered maturities of up to five years and the company plans to replace loans of about EUR2.0bn by issuing corporate bonds in the short to medium term. The loan will also be syndicated to further banks and institutional investors.
The refinancing was arranged through eight banks (previously four): BNP Paribas, Commerzbank, Deutsche Bank, HSBC, JP Morgan, LBBW, Royal Bank of Scotland and UniCredit.
“With the loan agreement signed today and our planned issuance of bonds we will diversify our funding sources and put our financing on a more sustainable and broader basis,” said Schaeffler CFO Klaus Rosenfeld.
