New Credit Agreement: GFKL Successfully Agrees a €100 Million Refinancing Package

The GFKL Group has taken advantage of favorable financing conditions to conclude a new credit agreement worth €100 million. Alongside an amortized loan, the package includes a €40 million revolving facility.

One aim behind the agreement is to refinance well in advance the outstanding amount of a loan that was taken out in June 2012 subject to restructuring terms. The new agreement comes with a term of four years.

“With the new loan, we are in a strong position for the next few years. We are especially proud of the fact that we have been able to win over new financing partners for GFKL and secure such a significant contribution,” explains Christoph Pfeifer, chief financial officer (CFO) of the GFKL Group. At the same time, the number of financial institutions in the banking pool has fallen from eleven to just five.

“Combined with the existing securitization platform and GFKL’s strong cash flow, the revolving credit line enables us to optimize our liquidity management and respond in a flexible and growth-driven manner to market opportunities. In turn, this strengthens our competitive position,” continues Christoph Pfeifer. “Last but not least, the commercial terms of the new agreement reflect the extremely positive way in which the company is developing.”

The new agreement was engineered by a consortium comprising Commerzbank, ING, NIBC Bank, BayernLB, and DZ Bank. During the refinancing process, Rothschild acted as a debt advisor to GFKL. Law firm Milbank, Tweed, Hadley & McCloy provided GFKL with legal advice, with the banking consortium represented by Freshfields Bruckhaus Deringer.

About the GFKL Group:

GFKL Financial Services AG is one of the leading providers of receivables management services in Germany. 1,100 employees look after receivables volumes of approximately €20.2 billion. GFKL’s offer is geared towards business groups, banks, insurance companies, utility companies, telecommunications companies, and public institutions as well as SME companies. GFKL’s competency in receivables management comprises a wide portfolio and high quality standards. Repeatedly, Standard & Poor’s have awarded the highest Servicer rating in Germany: “Strong, Outlook Stable.” www.gfkl.com