Pirelli signs new €1bn credit deal

Milan, Italy – Pirelli announced on 9 Jan that it had signed a new revolving and term loan multicurrency facility worth a total of €1 billion and with a maturity of five years.

“The facility replaces an existing 1.2 billion euro revolving line of credit which expires in November 2015 and which, as a consequence, will be cancelled in advance,” announced the company.

The new revolving credit line, said Pirelli, totals €800 million while the term loan amounts to €200 million, with an amortisation structure that reflects the group’s cash flow generation and deleveraging trends.

“The new contract is part of the group’s constant optimization of its debt structure – taking advantage of the opportunities being offered at present by a favourable market context and banking conditions – by lengthening the debt’s average maturity and diversifying sources of financing,” said the company press release.

The refinancing contract was underwritten by 10 primary international institutions: Bank of Tokyo-Mitsubishi, Barclays Bank PLC, BBVA, BNP Paribas, Commerzbank AG, Deutsche Bank AG, Mizuho, Natixis, Société Générale and UniCredit Bank AG.