IWKA successfully concludes syndicated loan for EUR 475 million
IWKA Aktiengesellschaft replaced debt and guarantee facilities previously provided primarily by bilateral short-term lines with various banks through a syndicated loan in the sum of EUR 475 million
January 31, 2007
The loan has a three year term which may be extended for a further one or two years under an agreement to that effect with participating banks. The syndicated loan places the Group's financing on a new basis.
The syndicated loan comprises credit assurances from the banks in the sum of EUR 475 million, including a cash facility for EUR 265 million and a guarantee facility of EUR 210 million. The latter is particularly important for IWKA in connection with the plant construction business, since the customary advance payments from clients must be secured by guarantees. In addition to the syndicated loan, insurance companies have promised guarantee lines worth EUR 50 million.
The bank consortium is led by Landesbank Baden-Württemberg, Dresdner Bank AG and HypoVereinsbank AG. The other underwriting banks are Bayerische Landesbank, the Royal Bank of Scotland and Deutsche Bank.
The syndicated loan is in addition to the financing provided by the convertible bond issued on April 24, 2006 in the sum of EUR 69 million. An ABS program established in December 2006 (regular sale of receivables) in the sum of EUR 25 million completes the refinancing of the IWKA Group.