Monday, May 22, 2017

Cross Channel Link Gains Debt Bonus as Record Number of Four Legged Passengers Carried

Refinancing for Eurotunnel at Favourable Rates as 2 Millionth Pet Transported
Shipping News Feature
FRANCE – UK – In a week when the Channel Tunnel link saw the 2 millionth pet carried underneath the waterway, Groupe Eurotunnel has released details of the financial restructuring which sees it raise debt of almost 2 billion euros to fully refinance its Tranche C debt. As part of the group's floating rate debt it managed to see the operation oversubscribed 2.5 times as it negotiated five separate fixed rates for repayments over periods ranging between 5 and 33 years borrowing a total of €1.975 billion.

The rates settled on run from 1.761% on €425 million over 5 years, up to 3.748 - 3.848% on €559.5 million over 33 years. Groupe Eurotunnel says this will enable it to make substantial savings on its refinancing pay back, reducing Tranche C payments by €60 million per annum, consequently dropping the average cost of the debt by approximately 200 Basis Points (BPS), to below 4%. Jacques Gounon, Chairman and Chief Executive Officer of Groupe Eurotunnel SE, commented:

"Our refinancing has been subscribed at advantageous interest rates, proof that the markets have confidence in the Group’s outlook and that our debt has been normalised. The savings generated will create a great deal of value."

As for the success of its pet transport policy, Eurotunnel is unsurprisingly the favourite mode of transport for owners wishing to carry their animals between the UK and France. The 35 minute crossing and the ability to travel all together in a familiar vehicle, be it car, van or freight truck, means the minimum of inconvenience and stress for all concerned. The Pet Travel Scheme began in 2001 and reached one million animals carried in twelve years, this next two million has taken a third of the time.