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:

Comments

Recommended

Not a few agree that the Volkswagen Polo news a styling overhaul. While this supermini still looks good as it is now, the latest facelift was around three years. With...
by - April 27, 2017
They say that when the going gets tough, the tough get going. That’s what Harvey Payne did with his Chevrolet Bolt. Ever since he bought it, it had been experiencing...
by - April 27, 2017
What defines a coupe? Well, according to the dictionary, “it is a car with a fixed roof and two doors”. Ok, now that it is clear, when does one not...
by - April 27, 2017
Back in 2013 was when the first hot hatch was released, that was the original A45 by Mercedes-AMG, carrying a hand-built 2.0 liter M133 turbo mill. It was then then...
by - April 27, 2017
BMW dealers have a problem, a good problem. The demand for the 2017 BMW 5 Series is very high, they cannot attend to all the customers. But actually, supplies are...
by - April 27, 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