Rexel locks up €1.1 billion five-year multicurrency revolving facility

By Susanna Moon

Chicago, March 18 - Rexel said it refinanced its senior credit facility with a new €1.1 billion five-year multicurrency senior revolving credit facility.

Interest will be Euribor or Libor plus 200 basis points, with a spread of 145 bps to 300 bps based on leverage.

Rexel refinanced its €1.7 billion revolving credit facilities agreement dated Dec. 17, 2009 with a new revolver on March 15, according to a company press release.

Credit Agricole Corporate and Investment Bank, BNP Paribas, Credit Industriel et Commercial, HSBC France, ING Bank SA, Succursale en France, Natixis and Societe Generale Corporate & Investment Banking are the mandated lead arrangers and bookrunners.

Credit Agricole also is documentation agent, facility agent and swingline agent.

There is a sublimit of €165 million for swingline loans.

Under the terms, Rexel must maintain a leverage ratio below 3.5 times as of Dec. 31 and June 30 of each year.

This ratio may exceed 3.5 times on three accounting dates during the life of the agreement, provided that the ratio does not exceed 3.75 times on two accounting dates during the life of the agreement and the ratio does not exceed 3.9 times on one accounting date during the life of the agreement, the release noted. It has been specified that only two of the three accounting dates may be consecutive.

The covenants restrict Rexel and its subsidiaries from incurring additional debt, giving guarantees and indemnities, making loans or credit to others, creating security interests, making acquisitions or investments or entering into joint ventures, disposing of assets, substantially changing the general nature of Rexel or the Group's business or entering into mergers, demergers or corporate reconstruction.

The facility must be prepaid, subject to agreed circumstances and exceptions and in varying amounts, in the event of a change of control of Rexel or a sale of all or substantially all of the assets of the group, the company said.

Voluntary prepayments and cancellations are also permitted under the agreement, subject to minimum amounts.

Rexel is a Paris-based electrical equipment and services company.

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