Scout24, operator of Germany's largest real estate and automobile classifieds websites has concluded a new syndicated loan with eleven renowned European banks under the leadership of UniCredit Bank AG totaling up to EUR 800 million and maturing in December 2021.
The new credit agreement comprises a term loan of EUR 600 million and a revolving credit facility of EUR 200 million. As a result of Scout24's growth in recent years, the new facility agreement has been concluded at considerably improved terms.
The loan is unsecured, with the interest margin being linked to the leverage ratio (ratio of net debt to ordinary operating EBITDA over the last twelve months).
With the current leverage ratio (2.9:1 as of 30 September 2016:), the initial interest margin is at 1.7%. Before the refinancing, the interest margin was at 3.5%. This improvement of the interest rates will result in interest savings of around EUR 12 million already in the financial year 2017.
Scout24's CFO Christian Gisy said:
“The new financing package reflects the strong business development and strong financial trajectory of Scout24 that have resulted from the excellent work we have done over the recent years. It gives us even more flexibility in shaping our future and further strengthening our market position. We will continue to push ahead with debt reduction so that we can quickly reach our target for the leverage ratio of 2.5:1, which we have set ourselves for the ability to pay dividends,” Gisy said.