Sif Holding N.V. has reached a EUR 350 million refinancing deal due to come into force in mid-2019.
The agreement was signed with RABO bank, ING, ABN AMRO, Euler-Hermes and Tokio Marine and is set to replace the current EUR 250 million facility.
According to Sif, the new facility consists of a revolving credit facility of EUR 100 million and a committed guarantee facility of EUR 250 million. It will expire on 22 February 2022 and includes two one-year extension options.
This increase from a EUR 90 million revolving credit facility and EUR 160 million committed guarantee facilities is expected to serve to support the company’s future business.
“This amended and broader facility provides sufficient flexibility to pursue our strategy going forward. This new agreement assures Sif a financing structure that fits the characteristics of our Company,” said Leon Verweij , Sif’s CFO.
Margins and commitment fees remain unchanged at Euribor plus a surcharge that depends on the leverage and solvency on a quarterly basis, Sif said.
The new leverage is expected to be equal to or less than 2.5, while previously it was 1.5 under the expiring facility. The solvency is anticipated to be equal to or more than 30% in 2019 and 35% during the years after 2019.
The Dutch company emphasized that the financing arrangement has also been made sustainable and discounts of max 0.05% can be earned if certain sustainability KPI’s are reached.