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Early Repayment Of Euro 104 Million Of The Financing Agreement With The Royal Bank Of Scotland
2007-02-27 14.35
First Target Achieved for Narrower Spreads on Senior Loan
Seat Pagine Gialle voluntarily repaid approximately € 104 million of the senior loan with the
Royal Bank of Scotland in advance of the due date. As is known, the financing agreement was signed
following the distribution of an extraordinary dividend on April 22, 2004, and was subsequently
refinanced on better terms in June 2005. In 2007, scheduled repayments will accrue for an
additional approximate sum of € 80 million.
The amount for the early repayment, which was made using the liquidity available at year-end
2006, confirms the Group’s excellent cash flow generation capacity. In addition to the repayment
envisaged in the contract, amounting to approximately € 162 million, a voluntary early repayment
amounting to € 15 million was made in 2006, alongside a repayment of approximately € 255 million
made using the securitisation earnings.
From 22 April 2004, Seat thus has repaid about € 875 million, € 620 million net of the
securitisation effect.
At year-end Seat achieved its first target toward narrower spreads on the senior loan
contract: as of the end of February, the Euribor spread will be cut from 2.03% to 1.83%, with a
positive impact on the cost of debt in 2007. This improvement partially offsets the impact of the
increase in the Euribor reference rate, though its effect was in any case contained as a result of
interest rate hedging policies already in place.
"With this further early repayment," stated CEO Luca Majocchi, "Seat once again demonstrates
its ability to generate cash and reach its deleveraging targets, despite major ongoing investments
to improve its offer, and the quality of services provided to both users and advertisers. "
Seat Pagine Gialle Communications
Tel. +39.011.435.3030 - Fax +39.011.435.3040
comunicazione.stampa@seat.it
Tel. +39.011.435.3030 - Fax +39.011.435.3040
comunicazione.stampa@seat.it
Seat Pagine Gialle Legal and Corporate Affairs
ufficio.societario@seat.it
ufficio.societario@seat.it
Barabino & Partners
Tel.+39 02 72 02 35 35 - Fax +39 02 89 00 519
Benedetta Spada
b.spada@barabino.it
Attachment
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©2007 SEAT Pagine Gialle P.IVA 03970540963