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MTU Aero Engines restructures its loans portfolio
Munich – MTU Aero Engines is revamping its credit structure and thereby taking a further step towards becoming a company with investment grade: MTU has concluded a loan agreement with Commerzbank, HypoVereinsbank, Deutsche Bank and UBS for a total credit line of 250 million euros. The agreement was signed on March 24, 2005. It supersedes the syndicated credit agreement for an overall amount of 620 million euros that was associated with the sale of MTU at the beginning of 2004. The new credit line serves to cover existing guarantees and the remaining indebtedness to banks and to create reserves for possible liquidity requirements. “The new loan agreement secures MTU an interest rate advantage of almost 3 percentage points,” stated Udo Stark, president and CEO, in Munich today.