Porsche has launched syndication of a 2.5 billion euro loan
By Andrew C., 30 Aug, 2010. 0 Comments
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Porsche AG has launched syndication of a 2.5 billion euro ($3.39 billion) loan, according to two bankers who are familiar with the matter. At the end of last year, a syndicate of seven banks had arranged the loan. To reduce their exposure, these banks decided to launch a round of general syndication. Porsche's massive debt is a result of a failed attempt to take over Volkswagen AG.
In its interim report for the first quarter 2009-2010, the carmaker secured a new credit line of up to 2.5 billion euros to refinance existing debt and to make sure that there's sufficient financial headroom.
Porsche AG's new loan is set to mature in December 2011 and has a one-year extension option. The bankers also said that the loan is being arranged by LBBW, Bank of America Merrill Lynch, Citigroup, HSBC, JP Morgan, Societe Generale and Royal Bank of Scotland.
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