Eiffage Said to Hire Rothschild to Advise on $5 Billion Loan Refinancing

Eiffage SA (FGR), France’s third-largest construction company, is seeking to refinance about 4 billion euros ($5.1 billion) of loans, according to three people with knowledge of the matter.

The company hired Rothschild Group as an adviser on the transaction, said the people, who declined to be named because the information is private. The company is seeking to name arrangers for the deal before offering it to a bigger group of banks, said the people.

Eiffarie, the Eiffage unit that owns Autroutes Paris-Rhin- Rhone, has about 3.8 billion euros of loans maturing February 2013, according to data compiled by Bloomberg. Its Autoroutes Paris-Rhin-Rhone unit, known as APPR, has a revolving credit facility of 1.8 billion euros with a similar maturity.

Money in a revolving credit can be borrowed again once it’s been repaid. APRR, rated at the lowest investment grade by Standard & Poor’s, sold 500 million euros of 2018 bonds last week at spread of 415.5 basis points above German government debt.

John Kiely, a spokesman for Rothschild declined to comment. Sandra Weigand and Claudine Rolland, spokeswomen at Eiffage and APRR didn’t returns a call and an e-mail requesting a comment.

To contact the reporters on this story: Esteban Duarte in Madrid at eduarterubia@bloomberg.net; Patricia Kuo in London at pkuo2@bloomberg.net

To contact the editors responsible for this story: Faris Khan at fkhan33@bloomberg.net; Paul Armstrong at parmstrong10@bloomberg.net

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