2020-04-04 IFR Magazine

82 International Financing Review April 4 2020

syndicated revolving credit facility as it

LOOKSûTOûMITIGATEûTHEûEFFECTSûOFûTHEû

CORONAVIRUSûPANDEMIC

4HEûLOANûISûSUBJECTûTOûTHEûAPPROVALûOFûTHEû

LENDERSûTOûTHEû2#&

4HEûADDITIONALûCREDITûFACILITYûMEANSû45)û

WILLûHAVEûACCESSûTOûõBNûOFûCASHûANDû

AVAILABLEûFACILITIES

/NEûOFûTHEûCONDITIONSûOFûTHEû+F7ûLOANûISû

THATû45)ûWAIVESûDIVIDENDûPAYMENTSûFORûTHEû

TERMûOFûTHEûLOAN

4HEû2#&ûMATURESûINû*ULYû

ITALY

PIRELLI SIGNS SLL

4YREûMAKERûPIRELLIûHASûSIGNEDûANûõMûlVE

year syndicated loan that is linked to the

COMPANYSûECONOMICûANDûENVIRONMENTALû

SUSTAINABILITYûTARGETS

4HEûlNANCINGûWHICHûWASûAGREEDûWITHûAû

GROUPûOFû)TALIANûANDûINTERNATIONALûBANKSû

WILLûBEûUSEDûMAINLYûTOûREPAYûDEBTûANDûCOVERû

DEBTûMATURITIESûFORûAROUNDûTHREEûYEARSûONû

SLIGHTLYûBETTERûECONOMICûTERMS

4HEûCOMPANYûHASûALSOûEXTENDEDûTHEû

MATURITYûOFûAûõMûCREDITûLINEûTOû

3EPTEMBERûûFROMû*UNEû

0IRELLIûTAPPEDûTHEûLOANûMARKETûINû*ULYû

ûFORûAûõBNûLOANûRElNANCINGûVIAûAû

group of 18 banks led by global coordinators

*0û-ORGANû"ANCAû)-)ûANDû-5&'

4HATûlNANCINGûCOMPRISEDûAûõBNû

THREE

YEARûTERMûLOANûAûõBNûlVE

YEARû

TERMûLOANûANDûAûõMûREVOLVINGûCREDITû

FACILITY

4HEûCOMPANYûALSOûISSUEDûAûõMû

3CHULDSCHEINDARLEHENûINû*UNEû

#HEM#HINAûBECAMEûTHEûMAJORITYûOWNERûOFû

0IRELLIûINû-ARCHûûASûPARTûOFûAûõBNûDEAL

ENEL BOOSTS LIQUIDITY

Utility ENELûHASûAGREEDûAûõBNûTWO

YEARû

CREDITûLINEûWITHûAûMARGINûLINKEDûTOûTHEû5.Sû

SUSTAINABILITYûDEVELOPMENTûGOALS

7ITHûNOûNEAR

TERMûMATURITIESûTHEû

lNANCINGûBOOSTSû%NELSûLIQUIDITYûASûTHEû

ONGOINGûCORONAVIRUSûPANDEMICûIMPACTSû

GLOBALûlNANCIALûMARKETS

4HEûlNANCINGûWHICHûWILLûBEûPROVIDEDûBYû

a group of Enel’s relationship banks, is

linked to Enel’s ability to increase its

RENEWABLEûGENERATIONûCAPACITY

%NELûAGREEDûAûõBNû3$'

LINKEDûREVOLVINGû

CREDITûFACILITYûINû/CTOBERûûVIAû5NI#REDIT

4HATûlVE

YEARûFACILITYûHASûAûMARGINûLINKEDû

TOûTHEûPERCENTAGEûOFûRENEWABLEûGENERATIONû

CAPACITYûINû%NELSûPORTFOLIOûWITHûAûTARGETûOFû

EQUALûORûGREATERûTHANûûTOûBEûACHIEVEDûBYû

THEûENDûOFû

Enel has incorporated four SDGs into its

STRATEGICûPLANûCOMPRISINGû3$'ûûAFFORDABLEû

ANDûCLEANûENERGYû3$'ûûINDUSTRYû

INNOVATIONûANDûINFRASTRUCTUREû3$'ûû

SUSTAINABLEûCITIESûANDûCOMMUNITIESûANDû

3$'ûûCLIMATEûACTION

4HEûCOMPANYûPLACEDûAû53BNûlVE

YEARû

3$'

LINKEDûBONDûINû3EPTEMBERûûWHICHû

WASûALSOûLINKEDûTOûTHEûCOMPANYSû

RENEWABLESûCAPACITYûTARGET

NETHERLANDS

SHELL STRENGTHENS LIQUIDITY

ROYAL DUTCH SHELLûHASûAGREEDûAû53BNû

revolving credit facility, increasing its

LIQUIDITYûASûCOMMODITYûMARKETSûAREûHITûBYû

UNCERTAINTYûOVERûTHEûCORONAVIRUSûPANDEMICû

ANDûOILûPRICEûVOLATILITY

4HEû2#&ûISûINûADDITIONûTOûTHEûCOMPANYSû

53BNûGROUND

BREAKINGû3/&2

LINKEDû2#&û

SECUREDûINû$ECEMBERûWHICHûTOGETHERûWITHû

AROUNDû53BNûOFûCASHûANDûCASHû

EQUIVALENTSûGIVESûTHEûCOMPANYûMOREûTHANû

53BNûOFûAVAILABLEûLIQUIDITY

4HEûCOMPANYûALSOûHASûACCESSûTOûANû

EXTENSIVEûCOMMERCIALûPAPERûPROGRAMME

$UEûTOûTHEûVIRUSûOUTBREAKû3HELLûEXPECTSû

SIGNIlCANTûUNCERTAINTYûOVERûPRICESûANDû

DEMANDûFORûOILûGASûANDûRELATEDûPRODUCTSû

-EANWHILEûTHEûRECENTûSHARPûDECLINEûINûOILû

PRICESûCAUSEDûBYûTHEûPRICEûWARûBETWEENû

Saudi Arabia and Russia has caused further

VOLATILITYûINûCOMMODITYûMARKETS

#ASHmOWûFROMûOPERATIONSûPRICEû

SENSITIVITYûATûAûGROUPûLEVELûISûESTIMATEDûTOûBEû

53BNûPERûYEARûFORûEVERYû53ûMOVEMENTû

INû"RENTûCRUDEûPRICES

BPûRECENTLYûSIGNEDûAû53BNû2#&û

STRENGTHENINGûITSûCASHûmEXIBILITYûINûCASEûOFû

POTENTIALûSHORT

TERMûMARKETûILLIQUIDITYûANDû

PRICEûVOLATILITY

AKZO NOBEL AGREES REFI

0AINTSûANDûCOATINGSûCOMPANYûAKZO NOBEL

HASûAGREEDûAûõBNûlVE

YEARûREVOLVINGû

credit facility, replacing and reducing a

õBNûFACILITYûTHATûWASûDUEûTOûMATUREûINû



4HEûUNDRAWNûMULTICURRENCYûFACILITYûWILLû

BEûUSEDûASûBACK

UPûTOûTHEûCOMPANYSû53û

DOLLARûANDûEUROûCOMMERCIALûPAPERû

PROGRAMMESûWHICHûCANûBEûUSEDûTOûTHEû

EXTENTûTHATûTHEû2#&ûISûNOTûDRAWN

Citigroup COORDINATEDûTHEûlNANCINGû

TOGETHERûWITHûBanco Santander, Bank of

America, BNP Paribas, Deutsche Bank, HSBC and

ING ASûBOOKRUNNERSûANDûMANDATEDûLEADû

ARRANGERS

BBVA, Barclays, Credit Suisse, JP Morgan,

Mizuho, NatWest, SEB, Societe Generale and

Standard Chartered WEREûMANDATEDûLEADû

ARRANGERS

.AT7ESTûISûFACILITYûAGENT

""""AA

RATEDû!KZOûISûFACINGû

UNPREDICTABLEûANDûLOWERûDEMANDûFORûITSû

PRODUCTSûDUEûTOûTHEûCORONAVIRUSûPANDEMICû

ASûWELLûASûANûIMPACTûONûITSûOPERATIONSûFROMû

VARIOUSûGOVERNMENTûMEASURESûAIMEDûATû

CONTAININGûTHEûSPREADûOFûTHEûVIRUSû4HEû

COMPANYûISûLOOKINGûTOûRAPIDLYûREDUCEûCOSTSû

ANDûMANAGEûCASHmOWSûINûTHEûSHORTûTERMûBUTû

ISûCOMMITTEDûTOûRETAININGûITSûSTRONGû

INVESTMENT

GRADEûCREDITûRATING

.ETûCASHûANDûCASHûEQUIVALENTSûWEREû

õBNûATûTHEûENDûOFûûANDûlNANCIALû

LEVERAGEûWASûûTIMESûNETûDEBTûTOû%BITDA

)Nûû!KZOûSOLDûITSûSPECIALITYûCHEMICALSû

BUSINESSûTOû4HEû#ARLYLEû'ROUPûANDû

3INGAPOREûWEALTHûFUNDû')#ûFORûõBN

BAM DRAWS DOWN

#ONSTRUCTIONûlRMûBAMûHASûFULLYûDRAWNûITSû

õMûREVOLVINGûCREDITûFACILITYûASûAû

PRECAUTIONARYûMEASUREûAFTERûPREDICTINGûAû

MATERIALûHITûONûITSûREVENUESûANDûRESULTSûFROMû

THEûCORONAVIRUSûPANDEMIC

4HEûDRAWDOWNûPROVIDESûTHEûCOMPANYû

WITHûINCREASEDûmEXIBILITYûANDûCONTROLûOVERû

ITSûCASHûRESOURCES

4HEû2#&ûWHICHûISûDUEûTOûMATUREûINû-ARCHû

ûWASûCOORDINATEDûBYû).'û"ANKûWITHû

!".û!-2/û+"#û"ANKûANDû2ABOBANKûALSOûASû

BOOKRUNNINGûMANDATEDûLEADûARRANGERSû".0û

0ARIBASû#OMMERZBANKû(3"#û,LOYDSû

3OCIETEû'ENERALûANDû5NI#REDITûAREûMANDATEDû

LEADûARRANGERS

!".û!-2/ûISûFACILITYûAGENT

)NûRESPONSEûTOûTHEûCRISISû"!-ûHASû

LAUNCHEDûAûPROGRAMMEûTOûREDUCEûCOSTSûANDû

CAPITALûEXPENDITUREûTOûREALISEûSIGNIlCANTû

CASHûSAVINGSû4HEûCOMPANYûISûSTOPPINGûORû

DELAYINGûALLûNON

BUSINESSûCRITICALûSPENDINGû

INCLUDINGûUNCOMMITTEDûCAPITALûSPENDINGû

ANDûSPENDINGûFORûVARIOUSûPROGRAMMESûANDû

EXTERNALûADVISORYûSERVICES

%XECUTIVEûCOMMITTEEûANDûSUPERVISORYûBOARDû

MEMBERSûHAVEûAGREEDûTOûREDUCEûTHEIRûPAYûBYû

ûWHILEûTHEûPANDEMICûPLAYSûOUTû4HEû

COMPANYûHASûALSOûSCRAPPEDûITSûûDIVIDEND

Most of BAM’s sites in the Netherlands

ANDû'ERMANYûAREûCONTINUINGûOPERATIONSûBUTû

ATûAûLOWERûPRODUCTIVITYûLEVEL

NORWAY

PGS DRAWS REVOLVER

'EOPHYSICALûCOMPANYûPETROLEUM GEO-SERVICES

HASûFULLYûDRAWNûITSû53MûREVOLVINGû

CREDITûFACILITYûASûTHEûCORONAVIRUSûPANDEMICû

COMBINEDûWITHûDISRUPTIONûINûTHEûOILûMARKETû

IMPACTSûTHEûOFFSHOREûSERVICESûINDUSTRY

4HEûDRAWDOWNûALLOWSû0'3ûTOûHOLDûITSû

LIQUIDITYûRESERVEûINûCASH

0'3ûSAIDûITûMIGHTûSEEKûANûEXTENSIONûTOûAû

53MûREDUCTIONûOFûTHEû2#&ûSCHEDULEDû

9 IFR Loans 2327 p 75 - XX.indd 82 03 / 04 / 2020 19 : 26 : 35