IVG Immobilien AG has made significant progress in optimizing its financial structure. Based on a binding agreement between IVG Immobilien AG and the syndicate banks, the Syndicated Loan 2009 (also known as 'SynLoan II') could be extended early. The syndicated financing was originally due in Q4 2012 and will now be prolonged by 12 domestic banks until Q3 2014.
The current credit volume is 1,047 million and continued redemption payments have been agreed financed through a pre-agreed sales program of caverns to a specialized fund structured by IVG investing in caverns (IVG Caverns Fund).
IVG expects a slight increase in cost of debt short term, with overall falling cost of debt over the lifetime of the financing.
In addition an early extension of the 'CORE'- financing with three German banks originally maturing in Q3 2012 could be secured. The consortium will provide the financing of 933 million now until December 2015. Here IVG expects financing costs to decrease.
The secured agreements are solely pending the corresponding credit documentation and implementation of the agreed securitization concept.
With these latest achievements IVG in a short period of time extended a significant amount of its short term debt, therefore making a further major step on its way to realign its financing structure. In total debt extensions of ca. 2.6 billion in short-term credit lines were secured in the last few weeks, leading to a significant improvement of the company's financial- and debt maturity profile.
Source: IVG Immobilien AG