Daimler Truck AG Secures €5 Billion Revolving Credit Line to Enhance Financial Flexibility

Daimler Truck AG Secures €5 Billion Revolving Credit Line to Enhance Financial Flexibility

(IN BRIEF) Daimler Truck AG has finalized a new revolving credit line worth €5 billion, capitalizing on favorable market conditions to replace its existing syndicated credit line set to mature. Coordinated by BNP Paribas, Deutsche Bank, and LBBW, with participation from 26 other banks, the five-year credit facility aims to bolster financial flexibility, ensure long-term liquidity, and maintain the company’s top-notch credit rating. The agreement also includes provisions for potential loan volume increases during its term. Claus Bässler, Head of Treasury and Tax at Daimler Truck, highlights the importance of cultivating partnership-based relationships with banks to support the company’s growth trajectory following its spin-off from Daimler AG.

(PRESS RELEASE) LEINFELDEN-ECHTERDINGEN, 27-Mar-2024 — /EuropaWire/ — Daimler Truck AG has signed a new revolving credit line worth €5 billion. The company is taking advantage of the currently attractive conditions on the credit market and is replacing the syndicated credit line that has existed since the spin-off in the same amount before it reaches maturity. The goals of the new syndicated credit line are to increase financial flexibility and secure long-term liquidity as well as to hedge the first-class credit rating. Daimler Truck received investment grade ratings from the rating agencies S&P Global Ratings and Moody’s after the spin-off (S&P Global Rating: BBB+, outlook positive; Moody’s: A3, outlook stable).

Besides BNP Paribas, Deutsche Bank and LBBW, who played a coordinating role in the negotiations, a further 26 national and international banks are involved. The duration of the new credit line is five years, with the option to extend it twice for an additional year each time. The credit line also includes the option to increase the loan volume by further €1.5 billion during the duration at the discretion of the lending banks.

In addition to more attractive conditions, Daimler Truck took the opportunity to restructure its strategic banking relationships around two years after the spin-off from the former Daimler AG. “We are striving for a partnership-based business relationship on an equal footing with all participating banks and are pleased that these banks will continue to support the growth of Daimler Truck in the following years,” comments Claus Bässler, Head of Treasury and Tax at Daimler Truck, on the successful completion of the syndicated credit line. A drawdown under the credit facility is not planned.

Media Contacts:

MAXIMILIAN SPLITTGERBER
Spokesperson Global Finance Communications
maximilian.splittgerber​@daimlertruck.com
+49 160 860 71 24

SARAH KRADER
Spokesperson Global Finance Communications
sarah.krader​@daimlertruck.com
+49 151 58610761

SOURCE: Daimler Truck AG