RWE AG (RWE) obtained a 4 billion-euro ($5.5 billion) revolving credit facility to refinance debt, according to a statement from Germany’s largest power generator.
The company said it’s taking advantage of the “favorable market environment” to improve the conditions of its debt. The five-year credit line, which includes two one-year extension options, replaces an existing loan of the same size, according to the statement.
Europe’s largest companies are benefiting from the lowest interest rates in more than six years as lenders seek to cement relationships. Investment-grade borrowers in the region paid an average margin of 73 basis points more than benchmark rates on credit lines arranged last year, the lowest since 2007, according to data compiled by Bloomberg.
Essen-based RWE offered a margin of 30 basis points on the new facility, people familiar with the deal said March 24. That compares with a spread of 50 basis points it paid on the loan obtained in 2010, according to data compiled by Bloomberg.
Investment-grade companies including Telefonica SA signed 18 billion euros of loans in the first quarter, almost half the volume agreed during the first three months of 2013, Bloomberg data show.
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