Porsche secures ten billion credit line
Porsche Automobil Holding SE, Stuttgart, finalized negotiations to secure a new credit facility of Euro ten billion to redeem a credit of the same size.
The credit framework contract allows Porsche to extend the volume to Euro 12.5 billion in the forthcoming weeks. In the wake of the extremely difficult global economic environment and the turbulences in the bond market banks needed additional assessment, thus resulting in a need for extra time. In addition to that, the new consortium includes banks that so far not have been counterparts of Porsche with respect to credit lines.
The credit line will be guaranteed by a consortium of 15 banks including Barclays Capital, Commerzbank, LBBW, Deutsche Bank, UBS, Credit Suisse, Santander, BayernLB, BNP Paribas, Calyon, UniCredit/HVB, Helaba, Intesa, WestLB und DZ-Bank.
Agreed at market conditions are two tranches of twelve month with the right of extending a tranche of Euro 6.7 billion for an additional year. Porsche intends to pay down the smaller tranche fast and aims for credit ratings the results of which should be available in may 2009.
With this credit line, Porsche is poised to further raise its stake in Volkswagen AG past the 75 percent mark. The laws in the German state of Lower Saxony require a stakeholder to own 80 percent of a company before it can be in charge.
Credits: JRC
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