Generali: renewed the revolving credit facilities

20 May 2015 - 15:28 price sensitive

Trieste – Assicurazioni Generali S.p.A. has renewed the revolving credit facilities, initially signed in May 2013 for a total value of € 2 billion, which may be used from today by the Company within a period of 3 to 5 years depending on the credit facility. The new credit facilities substitute the previous ones – both those with a 2-year duration that have expired and those with a 3-year duration that have been closed in advance.

This transaction, in line with the best market practice, will have an impact on the Group’s financial debt only if the facility is drawn upon and allows Generali to improve its financial flexibility to manage future liquidity needs in a volatile environment.

A group of 21 primary Italian and international lenders participated with strong commitment to the transaction. The total commitments received amount to € 13 billion, more than 6 times the company’s offer. The competitive offer process adopted by Generali allowed the Group to select 7 lenders and obtain very favorable conditions, strongly improved with respect to May 2013, both in terms of offered size and pricing.
The average cost if used is significantly lower than either the costs of the original facilities, with a reduction of approximately 3/4 of the original facilities’ costs, and the corresponding Credit Default Swaps for the same maturity. Finally, there are no fixed costs.
The success of this transaction demonstrates once again the high credit standing of the Generali Group in the financial markets.