Rexel completes €1.7 billion in new revolving credit facilities

By Sara Rosenberg

New York, Dec. 21 - Rexel SA closed on a new €1.7 billion credit facility on Monday, according to a news release.

BNP Paribas, Calyon, CM-CIC, HSBC France and Natixis acted as the mandated lead arrangers and bookrunners on the deal, and ING, the Royal Bank of Scotland plc, Société Générale Corporate & Investment Banking and Bank of America acted as the mandated lead arrangers. Calyon is the agent.

The facility consists of a €600 million three-year revolver A and a €1.1 billion five-year revolver B.

The revolver A will reduce to €400 million after one year and to €200 million after two years.

Pricing on the revolver A can range from Libor plus 150 basis points to 425 bps, and pricing on the revolver B can range from Libor plus 175 bps to 450 bps, based on the company's debt ratio.

Both tranches have a 25 bps fee if the total amount drawn is between 33% and 66% of the total commitment, and a 50 bps fee if the total amount drawn equals or exceeds 66% of the total commitment.

Financial covenants include a debt ratio, capital expenditures limitation and dividend payment limitation.

Proceeds from the facility, along with a €575 million senior unsecured notes offering, were used to refinance the company's €2.7 billion senior credit facility, of which €2.1 billion was drawn.

Rexel is a Paris-based provider of electrical solutions and equipment.

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