The transaction was signed today at the Company’s new London offices
- The Group will assign 50% of the operation to a loan and the remaining 50% to a standby credit line, reflecting its reduced financing needs
- A total of 22 financial institutions participated in the operation, coordinated directly by the Company, with demand reaching €1.8 billion
IBERDROLA today signed a €1 billion syndicated credit of which 50% will be a straight loan and the rest a standby credit line, reflecting the reduced financing needs of the Group.
Of the total, 50% will be a loan and the rest a back up credit line, reflecting IBERDROLA’s relatively low financing needs. Each tranche has separate conditions. The loan tranche matures in a maximum of 5 years, divided into an initial three years and the option of two consecutive one year terms. The spread was set at 150 basis points over Euribor.
The standby credit line has a 5-year life with a spread of 140 basis points over Euribor and a commitment fee of 35% of the spread.
The operation has been completed at markedly improved conditions over similar transactions arranged recently.
The operation, in which initially 22 financial institutions are taking part, was coordinated directly by IBERDROLA. A total of 80% of these institutions are foreign banks with demand totalling €1.8 billion. As a result of this transaction, the Company maintains a level of bank financing below 20% of its total debt.
The transaction signed today was for an initial €1 billion but will be increased to €1.2 billion at a later date.
This announcement is not an offer for sale of securities in the United States, nor in any other jurisdiction. The securities referred to herein may not be sold in the United States absent registration or an exemption from registration under the US Securities Act of 1933, as amended.
This communication contains forward-looking information and statements about IBERDROLA S.A., including financial projections and estimates and their underlying assumptions, statements regarding plans, objectives and expectations with respect to future operations, capital expenditures, synergies, products and services, and statements regarding future performance. Forward-looking statements are statements that are not historical facts and are generally identified by the words “expects,” “anticipates,” “believes,” “intends,” “estimates” and similar expressions.
Although IBERDROLA, S.A. believes that the expectations reflected in such forward-looking statements are reasonable, investors and holders of IBERDROLA, S.A. shares are cautioned that forward-looking information and statements are subject to various risks and uncertainties, many of which are difficult to predict and generally beyond the control of IBERDROLA, S.A., that could cause actual results and developments to differ materially from those expressed in, or implied or projected by, the forward-looking information and statements. These risks and uncertainties include those discussed or identified in the public documents sent by IBERDROLA, S.A. to the Comisión Nacional del Mercado de Valores.
Forward-looking statements are not guarantees of future performance. They have not been reviewed by the auditors of IBERDROLA, S.A. You are cautioned not to place undue reliance on the forward-looking statements, which speak only as of the date they were made. All subsequent oral or written forward-looking statements attributable to IBERDROLA, S.A., or any of its members, directors, officers, employees or any persons acting on its behalf are expressly qualified in their entirety by the cautionary statement above. All forward looking statements included herein are based on information available on the date hereof. Except as required by applicable law, IBERDROLA, S.A. undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.