Home / Knowledge / News / Textiles / Oerlikon fully repays syndicated credit facility
Oerlikon fully repays syndicated credit facility
23
Jul '12
Mr. Jürg Fedier
Mr. Jürg Fedier

Oerlikon has repaid in full the existing Syndicated Credit Facility related to the 2010 financial restructuring, which successfully completes the Company’s refinancing. The new diversified financing package consists of a Swiss Bond and a new Syndicated Credit Facility that will reduce financing costs by around CHF 40 million beginning 2013.

In addition to cost savings, the new package allows greater flexibility and was provided on an unsecured basis. Oerlikon CEO Dr. Michael Buscher said: “Oerlikon’s successful refinancing allows us to systematically continue on our path of creating value for our stakeholders by significantly reduced financing costs and greater strategic and operational flexibility.”

The cancellation of Oerlikon’s old Syndicated Credit Facility two years ahead of maturity becomes effective today with the full repayment of all outstanding debt under the old Syndicated Credit Facility, as well as the early redemption penalty on Facility C and accrued interest (including PIK).

The starting point of this comprehensive refinancing was the agreement of a new, unsecured Syndicated Credit Facility amounting to CHF 800 million on June 5, 2012. The new facility includes a CHF 700 million Credit Facility (Facility A) comprising of a revolving facility of CHF 450 million and an ancillary facility of CHF 250 million with a term of three years and two additional one-year extension options.

The new Syndicated Credit Facility carries an initial margin of 250 basis points per year. The initial syndicate consisted 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.

On July 13, 2012, the General Syndication was completed and a Syndication Agreement with six additional banks was signed including DBS Bank Ltd, HSBC Bank plc, JPMorgan Chase Bank, N.A., KBC Bank Deutschland AG, Landesbank Baden-Württemberg and Zürcher Kantonalbank.

Complementary to the Syndicated Credit Facility was the placement of a domestic Bond, which was issued on June 13, 2012 – Oerlikon’s first transaction on the Swiss Bond market – and settled on July 13, 2012. Oerlikon successfully placed a 4 year CHF 300 million straight bond with a coupon of 4.25 %. The interest will be paid annually starting on July 13, 2013.

The issue was led by UBS Investment Bank, Credit Suisse AG, Deutsche Bank AG and The Royal Bank of Scotland plc. On July 13, 2012 all conditions precedent to the new Syndicated Credit Facility were fulfilled and the effectiveness of the new Facility was confirmed. The twelve month CHF 100 million optional term loan (Facility B) has been cancelled in the light of the successful issuance of the domestic Bond exceeding expectations.

Must ReadView All

Apparel/Garments | On 1st Mar 2017

CMAI's Apparel Index for Q3 shows lowest growth at 1.4 pts

CMAI’s Apparel Index for the third quarter FY 2016-17 shows that the...

Courtesy: Carter

Apparel/Garments | On 1st Mar 2017

Kidswear retailer Carter’s acquires Skip Hop Holdings

US headquartered kidswear retailer Carter’s said it has acquired Skip ...

Courtesy: Lectra

Information Technology | On 1st Mar 2017

Lectra makes new strategy for fashion in Industry 4.0 era

Lectra, the world leader in integrated technology solutions, has...

Interviews View All

Rashi Menda
Zapyle

Every fifth sale we make on Zapyle is a repeat purchase

Amrit Sethia
SOIE

‘The intimatewear category in India is slowly becoming trend-sensitive.’

Sanjay Yagnik
Maa Tex Speciality

‘We suggest reducing dosage of sizing chemicals to reduce sludge...

Silke Brand-Kirsch
Schlegel und Partner

Silke Brand-Kirsch, executive partner of Schlegel und Partner, a leading...

Kevin Nelson
TissueGen

Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...

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...

Ritu Kumar
Label Ritu Kumar

‘Classics will return’ "There are a lot of people wearing western clothes ...

Jay Ramrakhiani
Occasions Elegance Wear

It is believed that by early 19th century, Varanasi weavers had moved away ...

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
February 2017

February 2017

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

SUBSCRIBE


Browse Our Archives

GO


eNEWS
Insights
Subscribe today and get the latest News update in your mail box.
Advanced Search