Banks confirm credit lines
Credit Agreement with bank consortium shall substitute bilateral credit lines
KIRKEL – 2012/01/28. Today, Praktiker AG reached an agreement in form of a term sheet with a bank consortium led by Commerzbank. Existing bilateral lines of credit will be transferred into a joint credit arrangement. The scope of funds made available to Praktiker, a sum in the mid double-digit million euro range, will remain unchanged.
Thus, Praktiker can continue to cover the possible risk of any financing peaks – which are typical for the upcoming spring season – by short-term access to these overdraft facilities.
With their commitment, the consortium banks mainly continue to maintain the existing general conditions for a smooth handling of the operational business but at the same time also support the company’s upcoming restructuring process.
Additionally, all commercial credit insurance providers cooperating with Praktiker have contractually committed themselves to keeping up existing supplier credits based on corporate needs also in the long term.