Porsche SE seeks 3.5 billion euro credit line
BERLIN -- Porsche SE, the holding company that owns 51 percent of
Volkswagen AG's common shares, said it's seeking a 3.5 billion euro ($4.8 billion) credit line.
Part of the deal will be used to replace older loans, according to Frank Gaube, a spokesman for the automaker. The two-year loans are being offered to lenders with an interest margin of 170 basis points more than the euro interbank offered rate, according to bankers with knowledge of the deal.
The carmaker is seeking to pare its loan costs to capitalize on a rebound in spending on luxury brands, the bankers said. The new loans will replace the remainder of an 8.5 billion euro deal agreed in November 2009 that cost Porsche 400 basis points more than Euribor, according to data compiled by Bloomberg. A basis point is 0.01 percentage point.
September deliveries increased 37.5 percent, Porsche AG said Wednesday. Third-quarter earnings may be reduced by about 1.6 billion euros because of the revaluation of the holding company's remaining stake in its car-making operations, a person familiar with the matter said Sept. 9
Deutsche Bank AG and Landesbank Baden-Wuerttemberg are leading the new loan, which includes 2 billion euros of term financing, Gaube said in a telephone interview.
Porsche and VW abandoned plans to complete a merger by the end of this year as lawsuits left them unable to agree on Porsche's value, they said Sept. 8. The two companies agreed to merge after Porsche racked up 10 billion euros in debt in its failed effort to gain control of VW.
Source: Bloomberg
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