The revolving credit facility, which allows the Germany-based company to borrow up to its €300m credit limit without having to reapply for each loan, has a five year duration and serves to replace liabilities due at the end of 2011 as well as to finance further growth.
Concluded over last three months
The comprehensive refinancing plan was concluded over the past three months and Bernd Hirsch, CFO of Symrise, announced the company’s delight at the conditions agreed upon.
“We are pleased that we were able to successfully finalize our refinancing within a very short time,” he said.
“The positive response on the part of lenders and investors shows that we are a strongly growing, very well-positioned company in an attractive market.”
Hirsch believes that for the coming years Symrise is in a very solid financial position and has now set the basis to implement its strategy which aims at profitable growth.
Issue of its first bond
In addition to the revolving credit facility, the Group also raised €300m through the issue of its first bond, which has a term of seven years.
In October, the Group announced its first ever bond issue as a means of refinancing its debt to increase cash flow and profitability.
The company said it wanted to take advantage of the ‘favourable market environment’ by planning the bond issue as a means of re-financing the existing financial debt, building on plans to comprehensively reorganise its finances.
Plans to refinance debt
The bond issue was the first of the series of measures aimed at refinancing the total debt of €550m that is due to be paid off at the end of 2011 and Symrise appointed UniCredit, Commerzbank and Deutsche Bank to manage the transaction.
Also in October, the fragrance firm obtained a long-term loan in the amount of $175m (€132m) in conjunction with a private placement.
The Group states that the refinancing plan places its financing on a longer term basis and is more diversified with respect to the maturity profile and the sources of financing than it was previously the case.