German mobile service provider freenet announced it has replaced its existing debt with a bank loan and corporate bond package totalling E740m.
The new financing consists of a three-year E240m syndicated loan, a E100m revolving credit facility and a…
German mobile service provider freenet announced it has replaced its existing debt with a bank loan and corporate bond package totalling E740m.
The new financing consists of a three-year E240m syndicated loan, a E100m revolving credit facility and a five-year E400m corporate bond. Commerzbank, Deutsche Bank and Unicredit were joint lead managers of the bond placement, while LBBW and WestLB were co-lead managers. The bond carries a 7.125% coupon.
freenet had E623m net debt at the end of 2010.
Freenet AG CFO Joachim Preisig said: “By significantly extending the maturity of our borrowings from 2014 to 2016 and by being less exposed to future interest rate risks, we increase the company’s planning certainty.
“In an environment of rising interest rates, we were able to keep our financing costs at the same level, while also diversifying the sources of our debt,” he added.
