VTG rolls in with Eu450m loan to complete refinancing exercise after US bond deals

May 06, 2011 12:00 am

German railway wagon maker VTG has signed a new Eu450m syndicated loan which will, along with US private placements completed at the end of March, extend the maturity of its funding. The US PPs will be used as long term core financing, while the credit line will fund investments. The debt raising exercise, which totals Eu930m, also increases the company’s flexibility.

The five year loan facility comprises a Eu77.57m fixed term loan, a £20m term loan and a revolving line of up to Eu350m.

Commerzbank, Deutsche Bank and UniCredit arranged the loan, while another 10 banks joined the deal in an oversubscribed syndication. Bank of America Merrill Lynch, Crédit Agricole, DZ Bank, ING, KfW and NordLB joined as mandated lead arrangers, while MM Warburg, Société Générale, SMBC and WestLB were arrangers.

The loan replaces an outstanding Eu640m line arranged in 2005 that was amended in 2007. That post-IPO facility was set to mature in 2015. Commerzbank, Crédit Agricole, DZ Bank, HSH Nordbank, ING, KfW and UniCredit provided the outstanding loan. By repaying the existing loan early, the company will generate expenses of around Eu18m through amortisations.

The company raised Eu450m and $40m in seven 10, 12 and 15 year maturities through the US PP exercise, which was led by Bank of America Merrill Lynch and Deutsche Bank.

The Hamburg-based VTG reported Ebtida of Eu154.4bn in 2010. The company, which is listed on the Frankfurt Stock Exchange and has the largest private wagon fleet in Europe, generated revenue of Eu629.4m.