Alpha has closed a €1.25bn refinancing of existing bank debt facilities. The €1.25bn of new debt facilities are split between €1.125bn senior debt and €125m junior debt.
The €1.125bn of drawn senior debt has been raised by a newly incorporated wholly owned Alpha Trains group company, Alpha Trains Finance SA. The senior debt is rated Baa2 by Moody’s and BBB by Fitch and comprises:
- €350m public bond maturing in 2025, listed on the Luxembourg Stock Exchange;
- €250m of institutional term loans maturing between 2027 and 2030; and
- €525m of term bank loans with tenors of between five and seven years.
The €125m seven-year junior loan has been raised by Alpha Trains Holdco Sarl, an intermediate holding company.
In addition, Alpha has raised €225m of ancillary facilities including a €130m liquidity facility, a €50m capex facility, a €25m revolving credit facility and a €20m maintenance reserve facility.
The financing has been provided by an international group of banks and institutional investors.
The refinancing represents an important step in Arcus’s strategy for the Alpha business and is a significant milestone for Alpha providing diversification of funding sources, extending the debt maturity profile and providing lower cost debt financing through a dynamic platform structure, to facilitate further growth and development of the business.
Credit Agricole Corporate and Investment Bank and UBS Investment Bank acted as financial advisors to Alpha, bookrunners for the bond issuance and placement agents of the institutional term loans. Please find attached a link to the announcement made by Alpha.
This information note (“Note”) has been prepared by Arcus European Investment Manager LLP (“Arcus”) for use solely for information purposes. Arcus makes no representations or warranties to the accuracy or completeness of any past, simulated or estimated performance results contain herein, and further nothing contained herein shall be relied upon as a promise by, or representation by, Arcus whether as to past or future performance results.