CIE Automotive (CIE) renewed its syndicated loan from the 600 M€ of the original loan to 690 M€ after remodeling. It has also increased the repayment period by one year, and CIE will not have to return the loan until 2024. The interest on the loan remains around 1%.
At the close of Q12019 CIE signalled that it’s net financial debt has risen to 943.6 M€, which implies a NFD/EBITDA ratio of 1.74X.
Positive news for CIE, as it has more funds to increase the loan and extend repayment to 2024. We believe that CIE’s increased generation of cash will allow it to repay this syndicated loan without problems.
Link analysts’ current recommendation on CIE is Maintain with an Objective Prive of 26.01€/share.
