Syndicated credit line renewed before maturity

As part of a proactive debt management strategy, in July Groupe SEB renegotiated the €560 million syndicated credit line set up with its partner banks in 2011 with an initial maturity of February 2016.

Taking advantage of highly favourable market conditions for borrowers and partnering with the same pool of seven banks, the Group signed an agreement on 31 July 2014 to set up a new five-year syndicated credit line for €560 million (i.e. the same amount), with two, one-year extension options. The facility is intended to support the Group’s €600 million commercial paper programme, but may also be used for other purposes.

In renewing the facility before maturity, the Group has extended the average maturity of its debt on more favourable terms, thereby strengthening its financial structure and reducing its financing costs.

Note that Groupe SEB’s net debt stood at €532 million at 30 June 2014, with gearing of 36% and a net debt-to-EBITDA ratio of 1.22.