Citycon Oyj has today signed a EUR 360 million long-term unsecured credit facility agreement with a Nordic bank group. The facility consists of bullet term loan of EUR 190 million and a EUR 170 million revolving credit facility. The loan period is on average five years.
"This successfully arranged loan refinancing transaction marks an important point in Citycon’s refinancing activities. Following this transaction practically all material bank loans due 2013 have been refinanced and Citycon’s average debt maturity is extended which are important considerations in the current uncertain economic environment. The transaction again demonstrates Citycon's access to capital and strength of our core bank relationship. The agreed margins were very competitive in the current debt markets, whilst naturally higher than those of the refinanced loans", comments CFO and Executive Vice President Eero Sihvonen.
The credit margins for drawn term loan are initially 2.20 per cent per annum. The margins are subject to a pricing grid based on Citycon's interest coverage ratio covenant. The credit margin for the revolving credit facility is on similar level as the margin of the term loan if largely drawn and depends additionally on the utilization of the facility.
The new syndicated credit facility will refinance an existing syndicated term loan facility due August 2013 which had an outstanding amount of approximately EUR 334 million. In addition, the new facility will, together with the EUR 150 million bond issued in May 2012, refinance EUR 150 million revolving credit facility due November 2012 which is at the moment fully undrawn.
The mandated lead arrangers of the facility are Pohjola Bank Plc, Danske Bank A/S, Helsinki Branch, Nordea Bank Finland Plc, Swedbank AB and Skandinaviska Enskilda Banken AB (publ).
Helsinki, 4 September 2012
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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