Faurecia to get €1.15 billion in credit facilities for refinancing

By Sara Rosenberg

New York, Oct. 31 - Faurecia plans on getting €1.15 billion in new revolving credit facilities, comprised of a tranche A due in 2014 and a tranche B due in 2016, according to a news release.

The tranche A has a two-year extension option.

BNP Paribas, Credit Agricole Corporate & Investment Bank, Natixis and Societe Generale Corporate & Investment Banking are the bookrunners on the deal, and the Bank of Tokyo-Mitsubishi UFJ, Ltd., Credit Mutuel-CIC, Commerzbank AG and HSBC France are the lead arrangers. Citigroup Global Markets Ltd. is an arranger.

Covenants include a net debt/EBITDA of less than 2.5 times and EBITDA/net interest of greater than 4.5 times.

Proceeds will be used to help refinance an existing €1.17 billion credit facility, of which €712 million was drawn as of June 30, and repay a €250 million line of credit from Peugeot S.A.

Other funds for the refinancing will come from €300 million of notes due 2016.

The company said in the release that the refinancing will enable it to extend its debt maturity profile, diversify its funding sources and obtain financing that is not subject to a covenant relating to Peugeot's minimum shareholding interest.

An agreement in principle for the new revolvers was entered into on Oct. 26. Closing is subject to customary conditions.

Faurecia is a France-based automotive equipment supplier.

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