Vestas agrees to revised credit facilities for new business model

Wind turbine manufacturer Vestas has agreed on revised credit facilities and loans with its lenders to reduce debt.

The company secured a revised €900m syndicated loan facility with the existing nine-bank consortium structured as a €250m amortizing term loan and a €650m revolving credit facility, thereby replacing the current syndicated facility of €1,300m.

Vestas also revised the term loans on an amortizing basis with the European Investment Bank for €200m and with the Nordic Investment Bank for €55m.

Previously in 2012, the company had conducted a detailed review of necessary funding for its new operating business model, wherein the revised facilities were found to support Vestas’ business model without equity issue.

Revolving credit facility and the term loans will expire in January 2015, the terms of which are subject to final credit approval and documentation.

On completion, the company will retain €1,155m credit facilities and a €600m corporate Eurobond.

Additionally, the Danish firm is securing new project related guarantee facilities.

Vestas president and CEO Ditlev Engel stated, "It is in the interest of Vestas to reduce our debt and we now look forward to focusing all our efforts on the continuous development of a more scalable Vestas."

Vestas CFO Dag Andresen added, "Vestas’ new operating business model has demonstrated its strength as our future funding requirement is now at a lower level, and we are confident that with the revised facilities Vestas will be well covered."