Tab NavigationGMAC Commercial Finance and Burdale Financial Limited Provide Innovative Financing for Woolworths
Largest Asset-based Lending Facility of its Kind in Europe
LONDON (Feb. 8, 2008) –GMAC Commercial Finance (GMAC CF), a part of GMAC Financial Services, and Burdale Financial Limited (Burdale), a member of Bank of Ireland Group, announced financing for Woolworths Group plc, which has entered into agreements to refinance its current bank revolving credit and other facilities with a new four-year facility totaling £385 million (USD766 Million). The new financing, represents the largest asset-based lending facility of its type to be closed in Europe, will provide the Group with greater flexibility with their near- and long-term working capital requirements, as the company's Entertainment Wholesale business continues to develop. Philip Lammas, Sales and Marketing Director of GMAC CF, commented, “We believe the company and its advisors, KPMG Debt Advisory, have been particularly farsighted in securing this asset-based lending facility, which matches the company's requirements and provides liquidity and flexibility through the Group's seasons. Many U.S. retailers are funded in this way and we believe other European retailers will follow suit.” The facilities comprise a pioneering £350 million (USD696 Million) secured asset-based lending facility and a £35 million (USD70 Million) second lien loan. The asset-based lending facility has been jointly arranged and underwritten by GMAC CF, which will also act as the facility agent and security trustee, and Burdale, the bookrunner and documentation agent. The second lien loan is provided by ADM Capital Europe LLP. The option exists to extend the financing for a fifth year. Commenting on the new financing, Stephen East, Group Finance Director of Woolworths Group plc. said, “The new financing arrangements provide the Group with flexible long-term facilities, which will enable its continued development and in particular, support the growth in the Entertainment Wholesale businesses.” Also commenting, Dennis Levine, Chief Executive at Burdale said, “Burdale looks forward to working with Woolworths' management as it continues to expand into new growth areas. The innovative financing facility now in place has been tailored to assist management in driving the business forward and its flexibility is one of the hallmarks of the large, complex asset-based lending structures that has earned Burdale its reputation in this niche sector.” About GMAC Commercial Finance Headquartered in New York, N.Y, GMAC Commercial Finance is part of GMAC Financial Services. About Burdale Contacts: Burdale/Bank of Ireland |
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