Autoliv gets $800 million bridge facility to fund Veoneer spinoff

By Marisa Wong

Morgantown, W.Va., May 24 – Autoliv, Inc. entered into an $800 million bridge facility agreement on May 24 with J.P. Morgan Securities plc and Skandinaviska Enskilda Banken AB as coordinators and bookrunners and SEB as facility agent, according to an 8-K filing with the Securities and Exchange Commission.

The bridge facility will be used to finance a cash injection into Veoneer, Inc. in preparation for its spinoff from Autoliv, which will be completed on June 29.

The facility matures on Nov. 24, 2018 but can be extended for an additional six months to mature on May 24, 2019.

Under the facility, the company pays a ticking fee on the undrawn and uncancelled amount of zero to 30% of the applicable margin, which is 30 basis points to 80 bps, in each case depending on the number of months that have elapsed since the signing date of the bridge loan.

The facility is subject to mandatory prepayment provisions, which require the company to use proceeds from capital market issuances toward prepayment of the loan.

Autoliv is a Stockholm-based automotive safety systems company. Veoneer is its electronics segment.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.