Icade signed a Club Deal with eight banks on July 20, 2012, for a total amount of 1.55 billion structured in three tranches.
This new financing structure, that testifies one more time of the quality of the relationship developed between Icade and its banks, enables to cover the financing needs of Icade and Silic, optimize the debts schedule, increase its back-up lines, while anticipating a combined financial structure that will reinforce the financial strength of the new entity.
Considering the current level of the interest rates and the financing conditions, the conclusion of the Club Deal will have a favorable impact on the average cost of the debt of Icade.
At the end of this operation, Icade will have close to a billion of available lines. Those back up credits allow Icade to have a strengthened leeway.
The characteristics of the three tranches of the Club Deal are:
- A Medium Term Credit Line, for 625 million and a five years maturity (with a 50%
amortization on the fourth year), that will cover the combined medium term needs of Icade and Silic ;
- A Revolving Credit Facility, for 550 million and a maturity of three years, negotiated in order to reinforce the financial structure of Icade thanks to an increase of the available lines ;
- A Forward Start Credit Line, for 375 million and maturity of three years from 2014 with a
straight line amortization every year, which aims at anticipating the refinancing of a part of
the term of 2014 of the syndicated loan of 900 million of Icade.
The medium term credit will allow Icade to cover the needs of Silic thanks to the setting up of two intra-group loans. These financing loans, the maintaining of which is subordinated to the finalization of the operation of combination between Icade and Silic, consist in:
- A 350 million loan with a five years maturity (and a 50% depreciation in the fourth year), aimed at covering the terms of 2012 and the beginning of 2013 of Silic;
- A 50 million advance with a 12 months maturity, aimed at covering the needs of short-term finance.
The dealers of the Club Deal are BECM (Crédit Mutuel-CIC Group), BNP Paribas, Crédit Agricole Corporate & Investment Bank, HSBC France, Lloyds TSB Bank PLC, Natixis and Société Générale.