Trelleborg Group reduces financing costs and extends loan maturity profile

The Trelleborg Group has strengthened its long-term financing by raising a new syndicated loan with a counter value of EUR 1,200 M (approximately SEK 10.9 billion) stretching over a five-year period with possibility to extend a further two years. The financing was significantly oversubscribed and the loan was increased from the original EUR 1,100 M to EUR 1,200 M. The new facility shall refinance Trelleborg’s existing USD 600 million facility of June 2002 and EUR 540 million facility of October 2003. The Facility is divided into two tranches of EUR 750 million and USD 600 million. The Facility margin at present gearing is 0,275% and the commitment fee 0.09%.

A total of 17 domestic and international banks participate in the financing. Mandated Lead Arrangers are Danske Bank, Fortis Bank, Handelsbanken, Nordea and SEB Merchant Banking. Arrangers are Lloyds Bank and ING Bank. Co-Arrangers are DNB NOR, Nord LB, Societe Generale and Deutsche Bank. Senior Lead Manager is Citigroup. Lead Managers are San Paolo IMI, HSBC, BBVA, Commerzbank and BNP Paribas.  

"This new Facility reduces our financing cost and also lengthens the maturity profile of our credit facilities with up to four years,” says Fredrik Arp, Trelleborg’s CEO. "The fact that the loan was significantly oversubscribed demonstrates the strong interest in participating in the future development of the Trelleborg Group."