MTU Aero Engines AG signed a new syndicated credit facility for 400 million euros, thus securing the group’s funding in the long term. The loan agreement with a syndicate consisting of five banks runs for five years and includes an option to extend the agreement for two years. This funding, which is used for general corporate purposes, is prematurely replacing the previous credit line of 100 million euros falling due in December 2015.
“The currently favorable financing conditions for companies with an investment grade rating were the main reason for the premature refinancing,” says CFO Reiner Winkler. “We have secured a solid liquidity reserve for the coming years by obtaining a new syndicated loan and have optimized our financing structure to meet future contingencies.”
Commerzbank Aktiengesellschaft and UniCredit Bank AG were lead arrangers in the transaction, which also saw the participation of Deutsche Bank, HSBC Trinkaus & Burkhardt AG and Bayerische Landesbank. Winkler: “This syndicate of banks gives us a good mix of national and international banks as partners to support our future growth.”