LONDON Feb 25 PSA Peugeot Citroen has
launched syndication of a 2.7 billion euro ($3.71 billion)
syndicated credit facility, the lead banks announced on Tuesday.
The financing, which launched on Monday, replaces an
existing 2.4 billion euro credit line that matures in 2014 and
2015 and will enable PSA to increase its financial flexibility
and extend the maturity of its financial resources.
The transaction is split between a 2 billion euro, five-year
facility and a 700 million euro, three-year facility with two
one-year extension options.
The new financing is conditional on the completion of a
planned 3 billion euro capital increase announced on February
The loan was underwritten by nine banks comprising joint
bookrunners and mandated lead arrangers, Banco Santander, BNP
Paribas, Citigroup, Credit Agricole CIB, Deutsche Bank, HSBC
France, Industrial and Commercial Bank of China, Natixis and
Peugeot is looking to replace a 2.4 billion euro facility
that was originally agreed in July 2010 via bookrunners BNP
Paribas, Credit Agricole CIB, HSBC, Natixis, Royal bank of
Scotland and Societe Generale.
The three-year financing had two one-year extension options,
which were exercised so that 200 million euros is due to mature
in July 2014, while the remaining 2.2 billion euros is due to
mature in July 2015.
Peugeot is rated BB- by Standard & Poor's and B1 by Moody's.
($1 = 0.7282 euros)
(Editing by Christopher Mangham)