Siemens secure $3bn credit facility

Siemens secured $3 billion revolving credit facility to replace an arrangement which expired last month.

Siemens. Picture: Supplied.

FRANKFURT -German engineering company Siemens has secured a $3 billion revolving credit facility to replace a previous arrangement which expired last month, the company said on Wednesday.

Europes biggest engineering firm said it had received more than $5.7 billion in commitments. Due to this huge over-subscription banks commitments were significantly scaled back, it said.

The facility has a tenor of five years with two one-year extension options.

It replaces the companys $4 billion facility from 2006, which expired in August 2013.

Siemens will pay a margin of 20 basis points (bps) over LIBOR on the new financing, below the 30 bps it pays on a 4 billion euro ($5.3 billion) facility arranged in April last year.

Commerzbank, Deutsche Bank and JP Morgan acted as coordinators and active bookrunners.