This excerpt taken from the SNY 6-K filed Sep 23, 2005.
Consolidated long-term debt at June 30, 2005 and December 31, 2004 breaks down as follows:
In 2004, the Group signed a credit facility agreement for a maximum of 16 billion in connection with the acquisition of Aventis .
The cash portion of the offer for Aventis (14.8 billion), paid on August 20, 2004, was financed as follows:
The Tranche C credit facility of 5.5 billion was not used.
As a result of the acquisition of Aventis by sanofi-aventis on August 20, 2004, the long-term debt of sanofi-aventis (excluding debt used to finance the acquisition) was increased by the long-term debt of Aventis, which as of December 31, 2004 stood at 2.9 billion. This long-term debt, consisting of bond issues, was incorporated into the sanofi-aventis balance sheet at fair value as of August 20, 2004, the date of the acquisition of Aventis.
On December 22, 2004, sanofi-aventis announced its intention to repay Tranche A, the 5 billion short-term tranche of the syndicated credit facility of a maximum of 16 billion contracted in April 2004 to finance the acquisition of Aventis. The repayment, made in January 2005, was financed by recently-updated commercial paper programs.
Simultaneously with this repayment, new 364-day revolving bank credit facilities were contracted for a total of 6.3 billion, comprising a 5 billion syndicated facility (including extension options) and 1.3 billion ($1.6 billion) under three bilateral US dollar facilities.
Following this reorganization of short-term credit facilities, all the remaining syndicated acquisition financing of 11 billion was repaid (Tranche B) or cancelled (Tranche C) between March and June 2005, via the following transactions:
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This refinancing package has generated significant savings in the cost of financing, thanks to a substantial reduction in credit spreads and commitment fees. It has also streamlined the contractual documentation relative to the syndicated acquisition credit facility, in particular by eliminating any reference to financial covenants. Finally, in parallel with the refinancing package, most of the Groups bilateral facilities originally contracted by the Aventis group have been terminated, in order to make the Groups financing/liquidity profile simpler and better matched.
Short-term debt and current portion of long-term debt
This item breaks down as follows at June 30, 2005 and December 31, 2004:
(1) The December 31, 2004 figure includes 5 billion for Tranche A.
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