Citycon Treasury B.V. has today signed a EUR 500 million unsecured committed multicurrency revolving credit facility agreement with a Nordic bank group. The loan period is five years and the loan terms include two one-year extension options that can extend the maturity to seven years subject to bank approval. The credit facility is guaranteed by Citycon Oyj.
"This successfully arranged syndicated credit line facility completes Citycon’s refinancing. Following the issuance of the EUR 350 million 10 year eurobond in September and the EUR 500 million eurobond issued in June last year, essentially all our bank loans are now refinanced. As a result, Citycon’s average debt maturity is extended to over 6 years, average cost of debt reduced to approximately 3.4% p.a. and unutilized lines of credit increased to approximately EUR 400 million. The transaction also demonstrates Citycon's access to debt financing at competitive terms and the strength of our core bank relationships”, comments Executive Vice President and CFO Eero Sihvonen.
The margin is subject to a pricing grid based on Citycon's interest coverage ratio covenant and depends additionally on the utilization of the facility. The credit margin for drawn loans is initially approximately 1% p.a., including the utilization fee.
The new credit facility will be used to refinance approximately EUR 100 million of term loans and additionally to replace a total of EUR 380 million currently unutilized existing revolving credit facilities with an average remaining maturity of 2.3 years. There are no substantial one-off costs relating to the repayments.
The mandated lead arrangers of the facility are Skandinaviska Enskilda Banken AB (publ) (also acting as Agent), Pohjola Bank plc, Danske Bank A/S, Nordea Bank Finland Plc and Swedbank AB (publ).
Helsinki, 18 December 2014
For further information, please contact:
Eero Sihvonen, Executive Vice President and CFO
Tel. +358 20 766 4459 or +358 50 557 9137
Citycon Oyj (NASDAQ OMX: CTY1S) is a leading owner, developer and manager of urban grocery-anchored shopping centres in the Nordic and Baltic regions, managing assets that total approximately EUR 3.3 billion and with a market capitalisation of approximately EUR 1.6 billion. For more information about Citycon, please visit www.citycon.com