The new revolving credit facility, worth EUR 2.2 billion, cancels and replaces the existing revolving credit facility signed in 2010 and expected to naturally expire in September 2015. The refinanced credit line is entirely undrawn both at 31 December 2013 and at 30 June 2014.
With this new revolving credit line, over the next 5 years Finmeccanica can rely on a banking liquidity source, in order to satisfy the working capital financing needs of its industrial activities, in line with financial market expectations, including rating agencies.
The operation attracted a great deal of interest from the credit institutions, with the participation of both the credit institutions of the existing pool and new credit institutions. The demand has been of EUR 2.6 billion, compared with the EUR 1.8-2.3 billion requested, therefore it has been distributed pro-quota.
In line with market conditions, the terms of the credit line envisage the payment of a spread of 180bp above Euribor (equal to the spread paid on the existing line), linked to a rating grid based on the credit rating assigned to Finmeccanica, to be increased by predetermined amounts as it is drawn down, as well as payment of the usual fees.
The banks that underwrote the operation are:
• Mandated Lead Arrangers e Bookrunners: BNP Paribas, Italian Branch, Commerzbank Aktiengesellschaft, Milan branch, HSBC Bank plc, Milan Branch, Intesa Sanpaolo S.p.A. Société Générale, Milan Branch, The Bank of Tokyo-Mitsubishi UFJ, Ltd. Milan branch, The Royal Bank of Scotland Plc, Milan Branch, UniCredit S.p.A.
• Lead Arrangers: Banca Popolare di Milano Soc.Coop. a r.l., Bank of America, N.A. Milan Branch, Banco Bilbao Vizcaya Argentaria, S.A. Milan Branch, Banco Santander, S.A.- Milan Branch, Citibank, N.A. Milan Branch, Credit Agricole Corporate and Investment Bank, Sumitomo Mitsui Banking Corporation Europe Limited, Milan Branch.
• Co-Arrangers: Banca Carige S.p.A., Banca Monte dei Paschi di Siena S.p.A, Banca Popolare dell'Emilia Romagna Soc. Coop., Banca Popolare di Sondrio ScpA, Banco Popolare Scarl, Bank of China Ltd., Milan Branch, Barclays Bank PLC, Milan Branch, Crédit Industriel Commercial, GE Capital S.p.A., J.P. Morgan Chase Bank N.A., Milan Branch, Unione di Banche Italiane società cooperativa per azioni.
BNP Paribas S.A. e UniCredit S.p.A. assumed the role of coordinating and documentation bank, while UniCredit S.p.A. will be the Agent Bank.
Finmeccanica and the banks were advised by the law firms Legance and Clifford Chance respectively.