International law firm Dechert has advised New World Resources, a Central Europe hard coal producer, on its EUR141m nine year loan facility guaranteed by Euler Hermes, the export credit
International law firm Dechert has advised New World Resources, a Central Europe hard coal producer, on its EUR141m nine year loan facility guaranteed by Euler Hermes, the export credit agency of the Federal Republic of Germany.
The facility serves to finance the acquisition of five new longwall sets under the second stage of NWR’s Productivity Optimisation Programme.
The EUR141m loan is being provided by mandated lead arrangers: Ceska sporitelna, Ceskoslovenska obchodni banka, KBC Bank Deutschland and Natixis. KBC Bank Deutschland acts as the Hermes agent and Natixis is the facility agent and documentation agent.
The loan finances 85 per cent of the net purchase price of the longwall sets and the related ECA premium. The facility’s availability period ends in June 2010 and NWR will repay the full facility in 17 semi-annual linear instalments.
The Dechert London corporate team advising NWR was led by London corporate partner Corinna Mitchell.
Mitchell says: "The successful completion of this loan facility highlights NWR’s strong credit standing, and the continued support it enjoys with its relationship banks despite the recent financial downturn.’
