PPC secures loan refinancing deal for €1.5bn remainder at 5.5%

PPC has secured a loan refinancing agreement for the remainder of a 2.2 billion-euro loan extended by a consortium comprised of the country’s main banks, following approval of the debt obligation’s new terms by the credit committees of all banks involved.

PPC shareholders are expected to be officially informed of the refinancing agreement today through the Athens Stock Exchange.

According to sources, the refinancing terms will apply to a 1.475 billion-euro amount, the outstanding sum of an original 2.2 billion-euro loan extended to PPC. The power utility has been offered a 5.5 percent interest rate, down from the initial rate of 6.5 percent, the sources added.

PPC officials have expressed particular satisfaction over the loan’s adjusted terms following the power utility’s agreement with its lenders, a five-bank consortium.

PPC’s chief executive Manolis Panagiotakis recently told a general shareholders’ meeting that extended negotiations and numerous meetings were needed to achieve the loan refinancing arrangement, primarily because of the substantial amount involved and the coordination needs of the five banks.

According to the PPC boss, the power utility is preparing to seek new funds from the credit market but will not make any moves until the power utility’s creditworthiness is upgraded and collections of consumer unpaid receivables have improved.