THE COMPANY

FINANCIAL STRUCTURE

On 22 June 2016 Gmp signed a new syndicated loan for €755m with a pool of 13 banks. This loan replaced in advance the previous one for €740m, signed on July 2007 which terminated in July 2017.

This new loan comprises 3 tranches:

  • Tranche A: €525m, with a mortgage guarantee for some of Gmp’s real estate assets and bullet repayment in 7 years.
  • Tranche B: €200m, with a mortgage guarantee, with annual amortization -except the first 2 years of grace period- and repayment in 5 years with 55% amortization due that year. This tranche is extendable annually with prior approval from the banks for up to 2 further years.
  • Tranche C: Credit line of €30m, without  a mortgage guarantee and bullet repayment in 5 years. This tranche is extendable annually, with prior approval from the banks for up to 2 further years and is undrawn at the current time.

In the context of refinancing: i) several bilateral loans worth €25m were cancelled, ii) the shareholder GIC made a payment of €88m corresponding to the last amount pending in the framework of its investment agreement with Gmp and iii) hedging portfolio was cancelled, resulting in a non-recurring financial cost of €55m.

Refinancing brought a considerable reduction in financial expense. Financial year 2017 was the first year when the Company saw the benefits of the better terms of the syndicated loan throughout the whole year. The Group’s financing cost at the year-end was of 1.97% and its average maturity is 5.4 years.   

In financial year 2017, net debt remained similar to the 2016 level of €805m.

Apart from this syndicated loan with €725m drawn down, the Group has bilateral loans with €152m drawn down.

Key financial data

€m 2016A 2017A
AMOUNTS
Gross debt 874 877
Syndicated loan 725 725
Bilateral loans 149 152
Cash and equivalents (70) (72)
Net debt 804 805
Undrawn balance 33 30
COST
Cost of debt at closing (%) 1.98% 1.97%
% debt at fixed or covered rate 70% 70%
Recurring cost 26 18
MATURITY
Average maturity (years) 6.4 5.4
INDEBTEDNESS RATIO
Adjusted LTV 42.3% 40.7%

Financing breakdown

Debt amortization schedule 2017 (€m)

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