Steel Mills
September 26, 2013
Loan Test Waived for ThyssenKrupp AG
Written by Sandy Williams
ThyssenKrupp AG received permission from lenders to waive a test on its EUR 2.5 billion line of credit. The loan required ThyssenKrupp to limit its debt to equity ratio to 150 percent, a test that ThyssenKrupp would likely have failed, allowing lenders to cancel the loan. In June of 2013, the company’s debt ratio was 186 percent. The line of credit was provided by 37 banks in 2007 and matures in July.
On Wednesday, European investor Cevian Capital announced acquisition of a 5.2 percent stake in ThyssenKrupp AG and expressed confidence in the future potential of the company. ThyssenKrupp stocks rallied 3.6 percent following news of the acquisition.
