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