Leonardo Helicopter reduces revolving credit by 200 million euros


In response to its reduced liquidity needs, Leonardo Helicopters has signed a new revolving credit facility through a pool of 26 banks and bookrunners. The new agreement provides Leonardo with a facility of €1.8 billion against an earlier €2 billion. In addition the facilities rate of interest has been cut to 0.75% or 75 basis points over Euribor — a daily reference rate of average interest at which the Eurozone bank will offer unsecured loans. Previously the rate was 100 basis points or 1% over the reference rate.

Alessandro Profumo, Leonardo CEO, said: “The revolving credit facility renegotiation is a step forward in the implementation of a disciplined financial strategy.

“Favourable market conditions enabled us to renegotiate the credit line in order to reduce further the financial charges, confirming the gradual decrease of working capital needs, while maintaining a banking liquidity source in line with financial market expectations, including credit rating agencies.”

In 2014 Leonardo had a €2.2 billion facility at 180 basis points above Euribor running until 2019. This was reduced to €2 billion, expiring in 2020. The new facility’s term expires in 2023.

Leonardo has yet to publish its 2017 results, but a recent guidance said that revenue and EBITA would come in at the lower levels previously expected. However, in its latest announcement to investors, the expressed confidence in levels of deliveries, revenues and stronger backlog and accelerating orders for 2018 through 2022.

Borrower: Leonardo
Date: 14 February 2018
Size: $1.8 billion
Term: Five years
Structure: Revolving credit facility
Borrower type: OEM
Borrower country: Italy

Mandated Lead Arrangers e Bookrunners: The Bank of Tokyo-Mitsubishi UFJ ltd – Milan Branch, Unicredit S.p.A., Commerzbank Aktiengesellschaft – Milan Branch, Cassa Depositi e Prestiti, BNP Paribas – BNL, Sumitomo Mitsui Banking Corporation Europe Limited – Milan Branch, HSBC Bank plc – Milan Branch, , Citibank N.A. – Milan Branch, Barclays Bank Plc – Milan Branch, Banco BPM, Banco Bilbao Vizcaya Argentaria S.A. – Milan Branch, Intesa Sanpaolo S.p.A., Crédit Agricole Corporate and Investment Bank, Société Générale – Milan Branch, Bank of America N.A. – Milan Branch, Banco Santander S.A.

Lead Arrangers: Natixis S.A. – Milan Branch, NatWest – The Royal Bank of Scotland Plc – Milan Branch, Deutsche Bank, UBI Banca.

Co-Arrangers: Banca Popolare Emilia Romagna Soc. Coop, Mediobanca, Bank of China Ltd – Milan Branch, Jp Morgan Chase Bank N.A. – Milan Branch, Crédit Industriel et Commercial, Banca Popolare di Sondrio ScpA.