German wind turbine company Nordex SE says it has agreed with 14 national and international banking partners on a new syndicated guarantee facility tailored to meet the requirements of the company's future growth.
With a value of EUR 950 million (approximately $1.037 billion), the new credit line has a term of five years. The agreement has been structured in such a way that, following the completion of Nordex's merger with Acciona Windpower (AWP), the credit line can be widened to include banks covering the Spanish wind turbine manufacturer's markets – particularly, growth markets such as South Africa, Mexico and India. If necessary, the facility can be increased to up to EUR 1.2 billion, says Nordex.
At the same time as the guarantee facility, an agreement was also reached on a cash facility of EUR 450 million with a duration of up to 18 months. Pending the finalization of the long-term funding instrument, this will cover the cash component of the AWP transaction and will also partly be used to repay a corporate bond maturing in April 2016.
The Nordex Group says it has now passed a further key milestone toward its merger with AWP.
Nordex expects the review by the competition authorities – for which Nordex has submitted all documents with the responsible authorities in five jurisdictions within the requisite period – to be completed in the first quarter of 2016.