14 May 2009
HeidelbergCement has taken an important step in the refinancing process
HeidelbergCement has taken the first step towards its comprehensive refinancing proposal. In order to refinance the EUR 600 million term loan A of the Hanson acquisition facility falling due on 14 May 2009, a new bridge facility has been provided. All lenders have unanimously agreed to this.
For a comprehensive refinancing, the company is proposing to roll in the remaining tranches of the acquisition facility and other bilateral credit lines and loans under a new consolidated facility and to adjust the financial covenants to bring them in line with current market environment.
With capacity adjustment measures, especially in the US and UK, and successful cost reduction programmes, HeidelbergCement has strengthened its position to overcome the challenges resulting from the difficult economic environment. At the same time, HeidelbergCement continues its disposal programme of non-strategic business units in the next two to three years in order to further deleverage.