Snam signs a mandate letter with a group of major banks
San Donato Milanese (Milan), 7 June 2012 - TodaySnam signed the mandate to structure and subscribe credit lines for a total of 11 billion euros, which will enable the Company to meet its capital requirements, including the repayment of current debt to Eni. Eleven major international and domestic banks were involved, namely: Banca IMI/Intesa Sanpaolo, Bank of America Merrill Lynch, BNP Paribas, Citi, HSBC, JP Morgan, Mediobanca, Morgan Stanley, Société Générale, UBS and Unicredit.
Within the framework of the ownership unbundling set out by the Prime Minister Decree of 25 May 2012, the agreement will enable Snam to pursue significant infrastructure investments with the aim of promoting Italy’s role as a European gas hub.
The agreement will also provide the Company, in the short term, with loans entirely based on bank credit, aimed at progressively reaching an objective debt structure which is widely composed of bonded loans, consistent with Snam’s business profile and the regulatory context within which the Company operates.
The signing of the agreement represents a further significant step towards Snam’s financial independence by Eni, a process which remains on schedule.
The banks have undertaken a commitment to finance Snam through credit lines differentiated in kind and maturity, in order to properly fund the Company’s requirements, consistent with the bond issue approved by Snam’s Board of Directors on 4 June 2012.
The banks’ commitment is subject to the completion of the related financing contracts by the end of July 2012. In line with international best practice in similar operations, the commitment is granted in absence of major events occuring – such as serious changes to political, financial and market situation both internationally and domestically – which would jeopardize the capacity of Snam and the banks respectively, to fullfil its commitments and raise the necessary funding sources at conditions which are deeemed to be adequate.
Orrick, Herrington & Sutcliffe acted as legal and fiscal advisor for Snam.
05 August 2016 - 16:19 CEST