ENDESA Takes out a Euro 2.7 Billion Line of Credit, the Biggest in Its History
06 June 2006 - 3:25AM
Business Wire
ENDESA (NYSE: ELE): -- Today ENDESA signed a Euro 2.7 billion loan
in a club deal. The loan has two tranches, A and B, of Euro 1.35
billion each. -- This deal will increase Company liquidity to Euro
6.7 billion. -- The deal is the largest single transaction in the
Company's history and demonstrates yet again the financial markets'
confidence in ENDESA. Today ENDESA (NYSE: ELE) signed a Euro 2.7
billion club deal loan. The purpose of the loan is to increase
liquidity. The loan's special characteristics in terms of maturity
and flexibility permit the company to optimise the deal's financial
costs in addition to enabling it to efficiently manage the
potential transfer or securitisation of booked regulatory line
items, expected to be completed in near future. As of 31 March, the
amount of these line items booked and pending payment was in excess
of Euro 3 billion, of which Euro 2.099 billion relate to the
cumulative mainland generation tariff deficit for 2005 and 1Q06,
Euro 837 million relate to the non-mainland deficit accumulated
between 2001-2005 and, lastly, Euro 102 million in connection with
CTCs in Italy. The deal, the largest ever signed by ENDESA to date,
is made up of two tranches, A and B, each amounting to Euro 1.35
billion, maturing in one and two years, respectively, on very
competitive conditions. Fifteen top tier financial entities
participated in the loan, three Spanish banks and twelve foreign
entities, reflecting the Company's strong credit quality and
demonstrating the confidence placed in Endesa by the financial
markets. This enabled the deal to be structured as a club deal with
a limited number of banks and without having to resort to a
syndication. The new deal is in line with ENDESA's strategy in
recent years of bolstering its balance sheet, and strengthens the
Company's already high liquidity level, which will now stand at
approximately Euro 6.7 billion, an amount which is more than enough
to meet its medium term financial commitments. For additional
information please contact Alvaro Perez de Lema, North America
Investor Relations Office, telephone # 212 750 7200
http://www.endesa.es
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