On Jan. 9, 2015, Pirelli signed a new revolving credit line and term loan worth 1 billion euros and maturity in five years, according to Tyres and Accessories. The loan and credit line replace an existing 1.2 billion euro line of credit that was expiring in November 2015.
The new revolving credit line equals 800 million euros while the term loan amounts to 200 million euros, with an amortisation structure which reflects the Pirelli Group’s cash flow generation and deleveraging trends, Tyres & Accessories reported.
The new contract is part of Pirelli’s ongoing efforts to optimize its debt structure, the tiremaker said. Pirelli plans to take advantage of opportunities being offered by favorable market and banking conditions, it said.
The revolving credit line entails an initial interest rate of Euribor plus 75 basis points, while the Term Loan has an initial interest rate of Euribor plus 95 basis points, according to Tyres & Accessories.
The new contract was underwritten by Bank of Tokyo-Mitsubishi, Barclays Bank PLC, BBVA, BNP Paribas, Commerzbank AG, Deutsche Bank AG, Mizuho, Natixis, Société Générale and UniCredit Bank AG.
