Cerved expects new €660 million agreement to save €23 million a year

By Wendy Van Sickle

Columbus, Ohio, July 30 – Cerved Group SpA entered into a €660 million credit agreement Thursday, according to a company news release.

The agreement provides for a €160 million amortizing credit facility and a €100 million revolving credit facility, both with five-year terms and interest of Euribor plus 200 basis points.

It also provides for a €400 million six-year bullet credit facility with interest of Euribor plus 250 bps.

The revolver replaces the company’s previous €75 million revolver.

The agreement’s single financial covenant is that the company’s net debt/EBITDA must not exceed 4.5x.

Banks involved in the debt include Banca IMI SpA, BNP Paribas SA, Crédit Agricole SA, Mediobanca SpA and Unicredit SpA.

Proceeds of the facilities will be used to repay the company’s senior secured fixed-rate notes due 2020 and its senior subordinated notes due 2021. The company said annual financing costs of the new credit agreement are expected to be about €16 million versus about €39 million in current annual costs to finance the notes, a savings of €23 million a year.

Cerved is a Milan-based credit information services provider.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.