Royal BAM Group nv announce the closing of a €500 million Senior Revolving Credit Facility (the ‘RCF’) and a €125 million Subordinated Term Loan (the ‘Sub loan’).
The RCF was originally launched at €700 million. After the announcement by BAM on 22 December 2011 of the successful disposal of its 21.5% stake in dredging company Van Oord for approximately €200 million, the RCF was reduced to €500 million. The syndication of both facilities nevertheless closed over-subscribed from the original launch amounts.
Jan Ruis, CFO Royal BAM Group : ‘ We are very pleased that in the current environment BAM has been able to secure new facilities for a timeframe of five years. Securing the corporate debt position of BAM is of great importance for the updated strategic agenda as announced on 17 November 2011. This renewal is tailored to our current and expected corporate financing needs. This new facility structure allows us to make more efficient use of our cash. The agreed upon covenants are the same as before, including the current seasonal pattern for the leverage ratio. Although the interest spread is somewhat higher, we believe that we can lower our overall corporate interest cost due to the possibilities of more efficient use of cash. ’
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Dredging Today Staff, February 1, 2012; Image: bam