New five-year 240 million euros unsecured Revolving Credit Facility (“RCF”) signed.
ZURICH – gategroup Holding AG, announced that it has signed a new five-year 240 million euros unsecured multicurrency revolving credit facility, which replaces the existing EUR 100 million revolving credit facility due to mature in June 2016.
Following the transaction, the company will use its excess cash to redeem 100 million euros of its 6.75% coupon bearing 350 million euros High Yield Bond.
This successful refinancing reinforces gategroup’s capital structure and substantially increases the Group’s financial flexibility to fund future growth. Cash flow and earnings will benefit from the secured lower interest rates which will trigger a sizeable annual reduction in interest costs compared to the existing structure.
“The new five-year RCF is fully aligned with gategroup’s strategy of increasing operational and financial flexibility, securing a long term maturity profile and maintaining multiple sources of funds at optimal cost. The new RCF highlights one of our important initiatives to optimize cash flow and net earnings,” said Christoph Schmitz, Chief Financial Officer of gategroup.
The new facility has been arranged through a global banking syndicate led by Citi, which includes BNP Paribas, Santander, Credit Suisse, Goldman Sachs, HSBC Bank plc, ING Bank NV and UBS AG.
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