BAM renews banking facilities and subordinated loan for five years

The RCF was originally launched at €700 million. After the announcement by BAM on 22 December 2011 of the successful disposal of its 21.5% stake in dredging company Van Oord for approximately €200 million, the RCF was reduced to €500 million. The syndication of both facilities nevertheless closed over-subscribed from the original launch amounts.

The new Facilities secure financing for BAM in the coming years. The RCF, which has a tenor of four years and incorporates a 1-year extension option, will be used to refinance BAM’s existing €475 million revolving credit facility originally dated 31 July 2007 and its €360 million term loan originally dated 27 May 2009, as well as for general corporate purposes. The Sub Loan has a tenor until 30 July 2017, and will be used to refinance the company’s existing €200 million subordinated term loan originally dated 31 July 2007.

Jan Ruis, CFO Royal BAM Group: ‘We are very pleased that in the current environment BAM has been able to secure new facilities for a timeframe of five years. Securing the corporate debt position of BAM is of great importance for the updated strategic agenda as announced on 17 November 2011. This renewal is tailored to our current and expected corporate financing needs. This new facility structure allows us to make more efficient use of our cash. The agreed upon covenants are the same as before, including the current seasonal pattern for the leverage ratio. Although the interest spread is somewhat higher, we believe that we can lower our overall corporate interest cost due to the possibilities of more efficient use of cash.’

The RCF was led by ABN AMRO Bank N.V., ING Bank N.V. and Rabobank as Bookrunning Mandated Lead Arrangers. KBC Bank NV and The Royal Bank of Scotland N.V. joined as Mandated Lead Arranger, Société Générale SA, Lloyds TSB Bank PLC, Australia and New Zealand Banking Group Ltd, Unicredit Luxembourg S.A. and BNP Paribas as Lead Arrangers and Banque LBLux S.A., Friesland Bank N.V. and Commerzbank Aktiengesellschaft as Arrangers.

The Sub loan was led by ABN AMRO Bank N.V., ING Corporate Investments Mezzanine Fonds B.V. and Rabobank as Bookrunning Mandate Lead Arrangers, The Royal Bank of Scotland N.V. joined as Mandated Lead Arranger and Friesland Bank N.V. as Lead Arranger.

Further information:

• Press: A.C. Pronk, +31 (0)30 659 86 21
• Analysts: P.R.E. Snippe, +31 (0)30 659 87 07