PARIS — PSA said it has secured a further 3 billion euros ($3.3 billion) worth of loans to strengthen its financial position in the wake of the hit to the global automotive industry from the coronavirus crisis.
The latest syndicated loans come on top of an existing 3 billion euros worth of undrawn credit lines, making available a total amount of 6 billion euros ($6.5 billion.)
The new syndicated loan has an initial maturity of 12 months with two optional 3-month extensions,PSA said in a news release on Monday.
“This operation reinforces our ability to face up this exceptional situation and prepare the future. It also proves the confidence of our partner banks in the financial strength and recognized resilience of Groupe PSA,” said PSA CFO Philippe de Rovira.
Last month agency Moody’s placed the credit ratings of seven European automakers including PSA and rival Renault on review for downgrade, citing the coronavirus crisis.
Last month the French government told PSA and Renault they were entitled to help such as guarantees on loans and leeway on bills as it seeks to help companies cope with the fallout from the health crisis. PSA did not say if its latest loans had attracted any state support.
PSA has suspended output in all its European plants and has not given a target date for restarting production.
PSA, which is in the midst of merging with Fiat Chrysler, has also postponed its annual shareholders’ meeting to June 25.
