Europe: PSA to refinance 2.7 billion euro loan image

The French automaker PSA Peugeot Citroen, which recently made official its 3 billion euro capital increase plan that would see China’s Dongfeng and the French state hold matching 14% stakes in the company, is moving forward with its restructuring plans.

According to the lead banks involved, PSA launched this week the syndication of a 2.7 billion euro (2.22 billion pounds) credit, aimed at replacing an existing loan of the same amount, that should mature in 2014 and 2015 – the measure seeking to enable the company increase its financial stability.

Nine banks – Banco Santander, BNP Paribas, Citigroup, Credit Agricole CIB, Deutsche Bank, HSBC France, Industrial and Commercial Bank of China, Natixis and Societe Generale – are underwriting the loan.

The 2.4 billion euro loan that PSA aims to replace was agreed with BNP Paribas, Credit Agricole CIB, HSBC, Natixis, Royal bank of Scotland and Societe Generale in July 2010.

The new financial agreement is conditioned by the completion of the planned 3 billion euro capital increase and the transaction has been split between a 2 billion euro, five-year facility and a 700 million euro, three-year one.

Via Reuters