Icade secures EUR 1.5b financing from eight banks

French property giant Icade has signed a EUR 1.55 bn club deal with a consortium of eight banks to refinance its acquisition of business park owner Silic. The bank consortium consists of Crédit Mutuel-CIC Group, BNP Paribas, Crédit Agricole Corporate & Investment Bank, HSBC France, Lloyds TSB Bank, Natixis and Société Générale.

Icade, which is in the process of finalising the takeover, said the new financing structure enables it to cover the financing needs of Icade and Silic, optimize the debts schedule, increase back-up lines, while anticipating a combined financial structure that will reinforce the financial strength of the new company. The operation will have a favorable impact on the average cost of the debt of Icade, it added.

The new financing, structured in three tranches, comprises a medium-term credit line, of EUR 625 mln with a five-year maturity; a revolving credit facility of EUR 550 mln and a maturity of three years, as well as a forward start creditline, of EUR 375 mln and a three-year maturity from 2014 with a straight line amortization every year, which anticipates the refinancing of a part of Icade's EUR 900 mln syndicated loan.