Leinfelden-Echterdingen – Daimler Truck AG has recently finalized the agreement for a new revolving credit line valued at €5 billion. This move comes amidst favorable conditions in the credit market, prompting the company to replace its existing syndicated credit line of the same amount, which was nearing maturity since the spin-off. The primary objectives of this new syndicated credit line include enhancing financial flexibility, ensuring long-term liquidity, and safeguarding its top-tier credit rating.
Following the spin-off, Daimler Truck attained investment grade ratings from S&P Global Ratings and Moody’s (S&P Global Rating: BBB+, outlook positive; Moody’s: A3, outlook stable).
In collaboration with BNP Paribas, Deutsche Bank, and LBBW, who led the negotiations, an additional 26 national and international banks are involved in this arrangement. The new credit line spans five years initially, with provisions for two one-year extensions. Furthermore, there exists an option to augment the loan volume by an additional €1.5 billion during the specified period, subject to the discretion of the lending banks.
In tandem with securing more favorable terms, Daimler Truck seized the opportunity to recalibrate its strategic banking partnerships approximately two years post-spin-off from the former Daimler AG. Claus Bässler, Head of Treasury and Tax at Daimler Truck, expressed satisfaction with the outcome, emphasizing the pursuit of equitable and partnership-driven relationships with all participating banks. He further affirmed that the supporting banks are poised to facilitate Daimler Truck’s growth trajectory in the forthcoming years. Notably, there are no immediate plans for drawdowns under the credit facility.
