Roissy, 26 June 2020
KLM secures loans of €3.four billion to assist overcome the disaster and put together for the long run
On 25 June 2020, the Air France-KLM Group Board of Administrators authorized a monetary help bundle backed by the Dutch State for KLM within the quantity of €3.four billion. These loans will allow KLM to climate the present COVID-19 disaster and put together for the long run.
The Dutch state assist to KLM comes along with the €7 billion in funding granted by the French State to Air France introduced on 7 May 2020.
Following discussions with the Dutch State and a number of other Dutch and worldwide banking establishments, the Air France-KLM Group and KLM have been in a position to finalize the varied elements of a monetary help bundle.
This financing consists of two loans for KLM and its subsidiaries:
- A revolving credit score facility of €2.four billion, granted by 11 banks, of which three are Dutch banks and eight are worldwide banks. The principle parts embrace:
- 90% assure supported by the Dutch State
- Maturity of 5 years
- Coupon at an annual charge equal to EURIBOR (floored at zero) plus a margin of 1.35%
- A value of assure granted by the Dutch state equal to 0.50% in 12 months 1, 1.00% in 12 months 2 and three, and a pair of.00% after 12 months 3
- A direct loan of €1 billion, granted by the Dutch State to KLM, with the next major parts:
- Time period loan of €1 billion
- Maturity of 5.5 years
- Coupon payable yearly at a charge equal to EURIBOR 12 months (floored at zero) plus a margin of 6.25% for 12 months 1, 6.75% for 12 months 2 and three, and seven.75% for 12 months four and 5
- Subordination to the brand new revolving credit score facility
Each the revolving credit score facility and the direct loan shall be drawn on a professional rata foundation. Additional drawings subsequent to the primary drawing are topic to sure situations being fulfilled by KLM. KLM’s first drawing below the brand new revolving credit score facility shall be used to repay and terminate the present revolving credit score facility drawn on 19 March 2020 for an quantity of €665 million.
Circumstances related to the direct state loan are linked to the airline changing into extra sustainable in addition to the restored efficiency and competitiveness of KLM, together with a complete restructuring plan and contributions made by staff.
KLM has undertaken to droop dividend funds to its shareholders till these two loans have been repaid in full.
This state assist, which stays topic to approval by the European Fee and the Dutch Parliament, will present KLM with the mandatory means to fulfill its obligations and adapt in a sector that the worldwide disaster will severely disrupt.
“On behalf of all the employees at the Air France-KLM Group, I would like to thank the Dutch State and the financial institutions for their support to KLM in this unprecedented crisis for the airline industry,” stated Benjamin Smith, CEO of the Air France-KLM Group. “KLM is a strategic asset for the Netherlands, and I’m pleased to have seen the country rally around this national champion during this very challenging period. I’m also proud to note that KLM plays a critical role in the Dutch economy, and we are willing to do what we can to assist in its recovery process. Thanks to the support of the Dutch and French states, I am certain that the Air France-KLM Group will emerge stronger than ever before following this crisis.”
“As a consequence of COVID-19, KLM is at present in an unprecedented disaster,” stated Pieter Elbers, CEO of KLM. “The financing package is necessary to secure the long and difficult road of recovery in the coming period. This is a very important step and I express my gratitude on behalf of all KLM colleagues to the Dutch state and the banks for their confidence in our organisation and our future. With the financing package, KLM can continue to fulfil its important social role in economic recovery and sustainability. In the coming period, we will be working on the restoration of the route network and, on the other hand, on the development of the restructuring plan and the far-reaching conditions that have been imposed on the package.”
Investor relations Press workplace
Olivier Gall Wouter van Beek
+33 1 49 89 52 59 +33 1 49 89 52 60 +33 1 41 56 56 00
olgall@airfranceklm.com wouter-van.beek@airfranceklm.com
Web site: www.airfranceklm.com
- Press launch Dutch state help VE
