Deutsche Post obtained a EUR 2 billion or USD 2.7 billion loan as interest rates fell in Germany. The refinance credit facility would replace an earlier loan the Bonn, Germany-based company got two years before it matured. Deutsche Post is the largest postal service in Europe.
The five-year revolving credit facility was arranged by Citigroup Inc, HSBC Holdings, Commerzbank and Deutsche Bank. Deutsche Post said in a statement that the loan has more favorable terms. The new debt also features two one-year extension options. Bloomberg data revealed that Deutsche Post would be paying an interest margin of 30 basis points more than the offered rate in Euro banks. The previous loan had Deutsche Post paying a margin of 55 basis points.
A revolving credit facility is a type of loan where money repaid for a debt could be borrowed again. For 2013, German firms that had investment-grade ratings were able to gather more than USD 30 billion through revolving credit facilities, based on Bloomberg data. Last year, they were only able to raise USD 11 billion.
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