Sponda Plc has extended the credit limits that function as back-up facility for its commercial papers for a further 12 and 24 months. The agreements were extended with the current lenders such that 150 million will mature in 12 months time and 100 million in 24 months.
In addition, Sponda signed an agreement for a EUR 82 million secured credit facility with Helaba (Landesbank Hessen-Thûringen Girozentrale). The credit facility is for 5 years and it ensures that Sponda can refinance the bonds that mature in 2010. For Helaba, this facility underlines further its commitment to the Nordic markets.
The margin on the credit facilities are in line with current market rates. The loan arrangements will not have a material impact on Sponda's financial expenses. The covenants of the facilities are in line with the company's other financial covenants of which the most important ones are the equity ratio and the interest coverage ratio. After these arrangements Sponda has no other long-term loans maturing before spring 2011.
Source: Sponda
