Alstom agrees £1.1bn banking deal
Engineering company Alstom, which has its UK headquarters in the Midlands, has signed a revolving credit facility with 18 banks worth €1.35bn (£1.13bn).
The France-headquartered company agreed the syndicated revolving credit facility with a five-year maturity to refinance an existing undrawn €1bn facility.
The transaction was oversubscribed, which Alstom said "illustrates both its success and the market’s confidence".
France-headquartered Alstom employs more than 1,500 people in the Midlands. Its operations are based in Rugby, Stafford, Ashby-de-la-Zouch, Derby, Birmingham and Wolverhampton.
Announcing the major credit deal, Alstom said: "In line with the group’s cautious liquidity management, this transaction extends the maturity of the existing facility from March 2013 to December 2016.
"It also increases the amount of the existing facility in line with Alstom’s growing size following the acquisition of power transmission activities in 2010, which are now operated by Alstom Grid."
Earlier this year, Alstom announced it is planning to plough its investment from the government's Regional Growth Fund (RGF) into a £44m Centre of Engineering Competence, located in Stafford.
Speaking to Insider, Stephen Burgin, country president of Alstom UK, said the investment in the Alstom Grid venture would create 125 jobs over the next three years.
