Feb. 21 (Bloomberg) -- Eiffage SA, France’s third-largest construction company, signed 3.5 billion euros ($4.6 billion) of loans to refinance debt backing the 2006 acquisition of French motorway network Autoroutes Paris-Rhin-Rhone.
The five-year financing was split between a 720 million-euro revolving credit obtained by APRR that pays an interest margin of 150 basis points more than the euro interbank offered rate, and a 2.8 billion-euro structured credit term loan for the company’s Eiffarie unit paying 300 basis points more than Euribor, according to an e-mailed statement from the company and data compiled by Bloomberg.
The revolving credit will replace APRR’s existing 1.8 billion-euro undrawn facility maturing in February 2013, the Asnieres Sur Seine-based company said. Eiffarie will use proceeds from the term loan to help refinance about 3.8 billion euros of debt due the same month, according to data compiled by Bloomberg.
Money in a revolving credit can be borrowed again once it’s been repaid. APRR, rated at the lowest investment grade BBB- by Standard & Poor’s, has sold about 2.6 billion euros of bonds since January 2011, according to Bloomberg data. It issued 500 million euros of 2018 bonds last month at spread of 415.5 basis points above German government debt.
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