New Michelin credit facility “in line” with debt refinancing strategy

On July 12 Compagnie Financière Michelin, a fully-owned Michelin subsidiary, signed a new credit facility to be used for general corporate purposes. This 1.5 billion euro multi-currency revolving credit facility, signed with a group of 21 banks, is intended to replace Michelin’s 2005-2012 1.5 billion euro syndicated line. Michelin states the new facility is “in line with the Group’s debt refinancing strategy.”

The facility has a five-year tenor and incorporates two 1-year extension options at each lender’s discretion. The syndication was successfully launched on 27 May 2011, and closed largely oversubscribed, thus, says the tyre maker, demonstrating “a very positive valuation of the Michelin Group’s credit risk by the market.

The final syndicate stands as follows:

Mandated Lead Arrangers and Bookrunners:

    The Bank of Tokyo Mitsubishi UFJ
    BNP Paribas
    Citi

    Crédit Agricole Corporate and Investment Bank

    HSBC France (mandated as Facility Agent)

    Natixis

    The Royal Bank of Scotland

    Société Générale Corporate & Investment Banking (mandated as Documentation Agent)

Mandated Lead Arrangers:

    Banco Santander

    Commerzbank

    JP Morgan

    Unicredit

Arrangers:

    Bank of America Merril Lynch

    Caisse Regionale de Credit Agricole Mutuel Centre France

    CM-CIC acting through BFCM and CIC

    Deutsche Bank

    Industrial and Commercial Bank of China

    Intesa Sanpaolo

    Mizuho Corporate Bank

    Royal Bank of Canada