Dr. Dieter Zetsche, Chairman of the Board of Management of Daimler AG and Head of Mercedes-Benz Cars. A lead in Formula One and more credit all in a couple of days. How do you say good Karma in German?
Yesterday Daimler AG (ticker DAI) concluded a syndicated credit line with a group of international banks for of €11 billion. The credit line has a term of five years with two extension options. It is said to give the company financial flexibility until the year 2025. Because of “ the favorable market environment, the existing credit line was extended prematurely.” (translation Daimler paid too much.) The transaction was concluded on improved terms and was significantly oversubscribed, thereby proving once again that banks prefer to lend to people and institutions that don’t really need to borrow. Because of the favorable credit environment and Daimler’s good credit rating, the commitment fee to be paid for the new credit line is lower despite its higher volume.
“The strong demand for this credit line and the attractive conditions for us show that Daimler enjoys a high reputation in the banking world and that the banks trust our strategy and the further development of the company,” according to Bodo Uebber, Member of the Board of Management of Daimler AG responsible for Finance & Controlling and Daimler Financial Services. (Maybe they should add that he is also responsible for “stating the Obvious” to his title.)
The broad-based consortium of more than 40 banks from Europe, Asia and America reflects the global orientation of Daimler’s business. However, Daimler does not plan to use the credit line now. It serves solely to secure sufficient financial flexibility always. (translation: Don’t hurt our stock price, we are not going on a spending orgy like a drunken sailor.) By signing this agreement, Daimler terminated the existing €9 billion syndicated credit line ahead of schedule.
About Ken Zino
Ken Zino, editor and publisher of AutoInformed, is a versatile auto industry participant with global experience spanning decades in print and broadcast journalism, as well as social media. He has automobile testing, marketing, public relations and communications experience. He is past president of The International Motor Press Assn, the Detroit Press Club, founding member and first President of the Automotive Press Assn. He is a member of APA, IMPA and the Midwest Automotive Press Assn.
He also brings an historical perspective while citing their contemporary relevance of the work of legendary auto writers such as Ken Purdy, Jim Dunne or Jerry Flint, or writers such as Red Smith, Mark Twain, Thomas Jefferson – all to bring perspective to a chaotic automotive universe.
Above all, decades after he first drove a car, Zino still revels in the sound of the exhaust as the throttle is blipped during a downshift and the driver’s rush that occurs when the entry, apex and exit points of a turn are smoothly and swiftly crossed. It’s the beginning of a perfect lap.
AutoInformed has an editorial philosophy that loves transportation machines of all kinds while promoting critical thinking about the future use of cars and trucks.
Zino builds AutoInformed from his background in automotive journalism starting at Hearst Publishing in New York City on Motor and MotorTech Magazines and car testing where he reviewed hundreds of vehicles in his decade-long stint as the Detroit Bureau Chief of Road & Track magazine. Zino has also worked in Europe, and Asia – now the largest automotive market in the world with China at its center.
Daimler Signs €11 billion Credit Line
Dr. Dieter Zetsche, Chairman of the Board of Management of Daimler AG and Head of Mercedes-Benz Cars. A lead in Formula One and more credit all in a couple of days. How do you say good Karma in German?
Yesterday Daimler AG (ticker DAI) concluded a syndicated credit line with a group of international banks for of €11 billion. The credit line has a term of five years with two extension options. It is said to give the company financial flexibility until the year 2025. Because of “ the favorable market environment, the existing credit line was extended prematurely.” (translation Daimler paid too much.) The transaction was concluded on improved terms and was significantly oversubscribed, thereby proving once again that banks prefer to lend to people and institutions that don’t really need to borrow. Because of the favorable credit environment and Daimler’s good credit rating, the commitment fee to be paid for the new credit line is lower despite its higher volume.
“The strong demand for this credit line and the attractive conditions for us show that Daimler enjoys a high reputation in the banking world and that the banks trust our strategy and the further development of the company,” according to Bodo Uebber, Member of the Board of Management of Daimler AG responsible for Finance & Controlling and Daimler Financial Services. (Maybe they should add that he is also responsible for “stating the Obvious” to his title.)
The broad-based consortium of more than 40 banks from Europe, Asia and America reflects the global orientation of Daimler’s business. However, Daimler does not plan to use the credit line now. It serves solely to secure sufficient financial flexibility always. (translation: Don’t hurt our stock price, we are not going on a spending orgy like a drunken sailor.) By signing this agreement, Daimler terminated the existing €9 billion syndicated credit line ahead of schedule.
About Ken Zino
Ken Zino, editor and publisher of AutoInformed, is a versatile auto industry participant with global experience spanning decades in print and broadcast journalism, as well as social media. He has automobile testing, marketing, public relations and communications experience. He is past president of The International Motor Press Assn, the Detroit Press Club, founding member and first President of the Automotive Press Assn. He is a member of APA, IMPA and the Midwest Automotive Press Assn. He also brings an historical perspective while citing their contemporary relevance of the work of legendary auto writers such as Ken Purdy, Jim Dunne or Jerry Flint, or writers such as Red Smith, Mark Twain, Thomas Jefferson – all to bring perspective to a chaotic automotive universe. Above all, decades after he first drove a car, Zino still revels in the sound of the exhaust as the throttle is blipped during a downshift and the driver’s rush that occurs when the entry, apex and exit points of a turn are smoothly and swiftly crossed. It’s the beginning of a perfect lap. AutoInformed has an editorial philosophy that loves transportation machines of all kinds while promoting critical thinking about the future use of cars and trucks. Zino builds AutoInformed from his background in automotive journalism starting at Hearst Publishing in New York City on Motor and MotorTech Magazines and car testing where he reviewed hundreds of vehicles in his decade-long stint as the Detroit Bureau Chief of Road & Track magazine. Zino has also worked in Europe, and Asia – now the largest automotive market in the world with China at its center.