France's Klepierre has announced it has refinanced EUR 750 mln and EUR 1.5 bn of syndicated loans due for repayment in June 2011 and January 2013 respectively. As part of the deal, the French retail property company has agreed a new EUR 2.4 bn financing line with BNP Paribas, its largest shareholder (52%).
France's Klepierre has announced it has refinanced EUR 750 mln and EUR 1.5 bn of syndicated loans due for repayment in June 2011 and January 2013 respectively. As part of the deal, the French retail property company has agreed a new EUR 2.4 bn financing line with BNP Paribas, its largest shareholder (52%).
The new credit line, which is due for final repayment in 2015, offers an average maturity of 4.4 years, with a first due date in June 2012 and a last one in June 2015. The margin is based on a Loan-to-Value (LTV) grid that can go up to 65%. The refinancing deal also gives Klepierre EUR 150 mln in additional financial resources.
Additionally, the company said it has eased its covenants for a EUR 1 bn loan due in September 2014 in a bid to 'maintain liquidity through the cycle.' The covenants related to the LTV ratio and the Interest Cover Ratio (ICR) were raised from 55% to 63% and from 2.5 to 1.9 respectively.
Following this restructuring, the company has reduced the repayment scheduled for 2011 from EUR 1.6 bn to EUR 855 mln. In return for this longer maturity and easing on the covenants, the average cost of debt rises by 25bps for an LTV of between 50% and 52%, and 29bps between 52% and 55%.
Laurent Morel, chairman of the Klepierre Executive Board, said: 'Restructuring our bank debt is a huge step for us. It will allow us to pursue the implementation of our EUR 1 bn disposal in the best interests of our shareholders.' The company remains committed to the goal of bringing its LTV ratio back below the 50% threshold, he added.
