Citycon Oyj has today signed a EUR 330 million long-term unsecured credit facility agreement with a Nordic bank group. The facility consists of a bullet term loan of EUR 220 million and a EUR 110 million revolving credit facility. The loan period is five years. The facility was oversubscribed during syndication.
"We are very pleased with this successfully arranged and oversubscribed loan refinancing transaction that further demonstrates Citycon's access to competitively priced funding and the strength of our core bank relationships", comments CFO and Executive Vice President Eero Sihvonen.
The credit margins are close to those of the credit facilities signed in 2010. The margins are subject to a pricing grid based on Citycon's interest coverage ratio covenant. The new syndicated loan will strengthen Citycon's available liquidity, provide means to finance company's growth with long-term financing and will extend the average loan maturity of Citycon's loan portfolio.
A total of EUR 240 million of the credit facility will be used to refinance a EUR 165 million revolving credit facility due in 2011 and a EUR 75 million revolving credit facility due in 2012.The rest of the proceeds will be utilized to finance Citycon’s (re)development pipeline and potential property acquisitions in accordance with Citycon's strategy.
The mandated lead arrangers of the facility are Pohjola Bank Plc, Danske Bank A/S, DNB NOR Bank ASA, Nordea Bank Finland Plc and Skandinaviska Enskilda Banken AB (publ) together with Swedbank AB (publ) as an arranger.
Helsinki, 12 May 2011
CITYCON OYJ
Marcel Kokkeel
CEO
For further information, please contact:
Eero Sihvonen, Executive Vice President and CFO
Tel. +358 20 766 4459 or +358 40 557 9137
eero.sihvonen@citycon.fi
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