Freenet : Long-term finance assurance for freenet AG with significantly improved conditions for the next five years

Long-term finance assurance for freenet AG with significantly improved conditions for the next five years

Büdelsdorf, 18 October 2017 - freenet AG [ISIN DE000A0Z2ZZ5] has successfully replaced the bridge finance which had been in place since March 2016 by way of a syndicated five-year bank loan with a total volume of 710 million euros. The transaction was arranged by Bayerische Landesbank, Commerzbank AG, Landesbank Baden-Württemberg as well as UniCredit Bank, and was placed completely within the existing bank consortium.

The bridge loan which was due to mature in March 2019 has been replaced by the syndicated bank loan due to mature in October 2022; this is applicable for the amortising loan of 610 million euros repayable upon final maturity as well as the revolving credit facility of 100 million euros which has currently not been drawn. Variable interest based on EURIBOR is payable for both tranches - the initial margin applicable for the amortising loan is now 1.60 percent (previously 2.10 percent), and the margin for the revolving credit facility is now 1.40 percent (previously 1.80 percent). Some contractual constraints have now also been improved for freenet AG; the previous bridge loan has now been replaced by a long-term unsecured bank financing arrangement.

ʺWith this transaction we have succeeded in achieving long-term financing assurance, and it means that we will be even more flexible for future investment decisions. A particularly positive aspect is that our good credit standing has been confirmed by the simultaneous significant improvement of the conditionsʺ, says Joachim Preisig, CFO of freenet AG.