11 September 2003 - 11:01

Royal BAM Group completes critical step in refinancing exercise

Bunnik, 11 September 2003 - Royal BAM Group, working closely with ING Bank and Rabobank, has placed a five-year subordinated loan of EUR 100 million.

The loan is to be repaid in four equal annual instalments, the first of which falls due in 2005. The loan terms make provision for early repayment on the usual conditions. The loan carries a floating rate based on 6-month EURIBOR plus 5%.

The loan will be used to repay part of the bridging loan raised to finance the acquisition of HBG in November 2002. After this partial repayment and assuming free cash flow of at least EUR 100 million in 2003, the outstanding principal of this bridging loan will be EUR 300 million.

This transaction will increase the ratio of capital base to total assets by 2.5 percentage points to 14.7% compared with the figure of 12.1% by mid-2003.

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