Siemens secures credit facility worth USD3 billion

By Rizza Sta. Ana

Oct 02, 2013 09:42 AM EDT

On Wednesday, Europe's biggest engineering firm Siemens said it had secured a revolving credit facility worth USD3 billion. The credit facility would be a replacement to a previous financial arrangement that had expired the past month. The previous credit facility was worth USD4 billion initiated back in 2006.

Siemens is a multinational engineering and electronics conglomerate. With headquarters in Munich and Berlin, it had been touted as the largest company focused in electronics and electrical engineering in all of Europe.

Siemens also said it received over USD5.7 billion in financial commitments. The facility had a five-year tenor with two, one-year extension options. The German company would be paying a 20 basis points margin over LIBOR or London Interbank Offered Rate on the new financing arrangement. This was below the 30 basis points margin Siemens had paid on its EUR4 billion or USD5.3 billion credit facility that it had arranged in April 2012.

Siemens had tapped JP Morgan, Deutsche Bank and Commerzbank to act as its actuve bookrunners and coordinators for the new credit facility.

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