Home / Knowledge / News / Textiles / Oerlikon signs CHF 800mn syndicated credit facility
Oerlikon signs CHF 800mn syndicated credit facility
06
Jun '12
Oerlikon announces that it has signed a new CHF 800 million Syndicated Credit Facility with a group of seven international banks as a first milestone of a complete refinancing of the Group. The Syndicated Credit Facility replaces the existing facilities from the 2010 Group refinancing, which would have been due in June 2014. The finance package:

• significantly reduces the annual cost of financing,

• provides greater flexibility at improved terms,

• does not require security, and

• diversifies funding sources and further optimizes Oerlikon's financing structure through issuance of a CHF domestic bond.

It is planned to issue the domestic bond within the next weeks (subject to market conditions), which is conditional for the new credit facility to become effective.

Oerlikon has entered into a new unsecured Syndicated Credit Facility amounting to CHF 800 million. The terms of the agreement reflect the Group's strong operational and financial performance of the last two years and a continued focus on disciplined use of cash.

The new facility will include a CHF 700 million credit facility (Facility A) comprised of a revolving facility of CHF 450 million and an ancillary facility of CHF 250 million with a tenor of three years and two additional one-year extension options, and a twelve month CHF 100 million optional term loan (Facility B).

Facility A is for general corporate purposes. The flexible terms allow Oerlikon to capitalize on growth opportunities. The optional term loan serves as a short-term buffer. The new Syndicated Credit Facility carries an initial margin of 250 basis points per year.

Oerlikon CEO Michael Buscher commented: "Our ability to execute this new facility shows the market's recognition of Oerlikon's underlying performance improvement and regained confidence - both of which have yielded a continually improving credit profile. This marks yet another milestone in the creation of a stronger and better positioned Oerlikon Group."

Oerlikon CFO Jürg Fedier said: "This new facility, in combination with a domestic bond issue, will allow repayment of the existing facilities two years ahead of maturity, and will successfully remove the last legacy of Oerlikon's 2010 financial restructuring."

The new syndicate consists of Commerzbank Aktiengesellschaft, Credit Suisse AG, Deutsche Bank AG, Société Générale Corporate & Investment Banking, The Royal Bank of Scotland plc, UBS AG and UniCredit Bank AG. Oerlikon intends to invite other banks to participate in the Syndicated Credit Facility in a further general syndication.

Oerlikon is a leading high-tech industrial group specializing in machine and plant engineering.

Oerlikon

Must ReadView All

Courtesy: Bruckner

Textiles | On 3rd Dec 2016

Indian textile companies opt for Brückner stenter lines

Indian textile firms Laxmipati Sarees, makers of polyester sarees and ...

Courtesy: Bombay Dyeing

Textiles | On 3rd Dec 2016

Bombay Dyeing to focus on retail; stops textile production

Bombay Dyeing, a Wadia group company, has decided to shift its focus...

Apparel/Garments | On 3rd Dec 2016

Q3FY17 net earnings slip 26.8% at denim retailer Guess

In the three months ended October 29, 2016, net earnings at denim...

Interviews View All

Anshul Sood
Oceedee

‘Indian footwear market is nascent and largely a trend follower’

Rajiv Sirohi
Shara

‘Portugal is taking away a major share of the mill made sector.’

Frank Gossmann
Rotorcraft AG

‘RT3 motto is: Do not check millimetres, check colours.’

Kai Poehler
Voith Paper GmbH & Co. KG

The glass mat industry is growing by five to eight per cent annually. Kai...

Suresh Patel
Sidwin Fabric

Sidwin Fabric is a manufacturer and exporter of polypropylene textiles and ...

Kerem Durdag
Biovation II LLC

Kerem Durdag, CEO, Biovation II LLC, provides an insight into future...

Wendell Rodricks
Wendell Rodricks

"We should not compare India and the West. There are things we do that...

Igor Chapurin
Chapurin

"Now we can see the Russian trend in international fashion. And Russian...

Bani Batra

Bani Batra’s couture wedding collection is inspired by traditional Indian...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH
December 2016

December 2016

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


Advanced Search