Porsche SE seeking a 3.5 billion-euro ($4.8 billion) credit line

Article by Christian A., on October 13, 2011

Porsche SE is hoping to get a 3.5 billion-euro ($4.8 billion) credit line, a portion of which is meant to replace older loans, according to Porsche spokesman Frank Gaube. Porsche SE is the holding company that owns 51% of Volkswagen AG's common shares.

Bankers who are familiar with the deal said that the two-year loans will be offered to lenders that have an interest margin of 170 basis points higher than the euro interbank offered rate. The bankers said that Porsche hopes to cut its loan costs in order to benefit from the recovery in the demand for luxury vehicles.

These new loans are expected to replace what’s left of an 8.5 billion euro deal entered in November 2009 that cost Porsche 400 basis points more than Euribor, according to Bloomberg data.

Notably, a basis point is 0.01 percentage point. Porsche AG said that its deliveries in September rose by 37.5%. A source said that third-quarter earnings could be lowered by about 1.6 billion euros due to the revaluation of the holding company's remaining stake in its car-making operations.

The new loan is being led by Deutsche Bank AG and Landesbank Baden-Wuerttemberg. Gaube said that this loan includes 2 billion euros of term financing.

On Sept. 8, Porsche and VW announced that they had scrapped plans to complete a merger by the end of 2011 as lawsuits had made it very difficult for them to agree on Porsche's value. The two firms agreed to a merger after Porsche incurred 10 billion euros in debt from a botched attempt to wrestle control from VW.

Topics: porsche

If you liked the article, share on:

Pin It

Comments

Recommended

Sorry to say this to the Sport Quattro Concept fanatics. If you guys have been hoping for the production of this iconic concept to begin, prepare for your dreams to...
by - March 27, 2017
South Korean car company SsangYong recently revealed sketches of their upcoming SUV. We’re not always impressed by Korean car designs, but this one looks quite promising. Yup, it is the...
by - March 26, 2017
Twenty-eight years after the company was first launched by Toyota, which was initially targeted to the United States market only, Lexus has already made its way to over 70 countries....
by - March 26, 2017
Last year was probably Porsche’s best year ever in terms of sales. Their factory in Stuttgart delivered 237,778 cars in total, which represents a six percent increase compared to the...
by - March 26, 2017
Lamborghini has disclosed that it is looking into the possibility of releasing electric vehicles. With the Volkswagen Group revealing that it will be releasing electric vehicles within several years, there...
by - March 25, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries