Orco Germany has paid off its outstanding €282 mln loan from The Royal Bank of Scotland (RBS).
Orco Germany has paid off its outstanding €282 mln loan from The Royal Bank of Scotland (RBS).
Orco Germany, the German unit of Orco Property Group, said its GSG Asset GmbH & Co. Verwaltungs KG subsidiary has paid off its outstanding €282 mln loan in full from The Royal Bank of Scotland (RBS).
In a statement, Orco said this was made possible by the drawing of a new loan with a total volume of €270 mln from a consortium of five German banks led by DG HYP and consisting further of Coreal Credit Bank, Düsseldorfer Hypothekenbank, HSH Nordbank and Investitionsbank Berlin.
The new loan has a term of five years and an interest service lower by 2 percentage points than the initial RBS loan. The agreement stipulates a mortgage collateralisation of the loan, a minimum capex spending commitment as well as quarterly amortization, which will reduce the company’s Loan To Value based on the current company valuation to 55% in 2017.
The GSG loan terminated on 15 June 2012 and was initially extended for a month, with a further extension on the debt standstill agreement signed in July 2012.
GSG was advised by Dukon Deutsche Unternehmenskapital and Rothschild, Gehrke Zumbroich & Partner and Salans.
