Reuters: Global Markets: Banks throw Vestas 900 million euros credit line

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Banks throw Vestas 900 million euros credit line Nov 26th 2012, 11:28 COPENHAGEN | Mon Nov 26, 2012 6:28am EST COPENHAGEN (Reuters) - Ailing Danish wind turbine manufacturer Vestas (VWS.CO) on Monday said its banks have offered a 900 million euros loan facility, eliminating the short term need for an equity issue. The company said the facility reflected approval by the existing lender group of nine international banks of the company's operating business model and belief it could bring down debt in the years to come. Markets have been rife with speculation that Vestas could need to raise capital, with investors worrying about the company's free cashflow, which remained negative in the third quarter. The company said three weeks ago there was a risk that full-year cashflow could range from zero to a negative 500 million euros. Its shares jumped 15.4 percent at 0601 EDT against a declining Copenhagen stock exchange benchmark index .OMXC20. "A potential share issue will not be demanded by the banks now and that is an absolute positive," said Alm Brand analyst Michael Jorgensen. "The question is still how clients will react to a highly geared Vestas," Jorgensen said, adding they might have concerns placing orders since such deals run for about 20 years. Vestas has been the subject of takeover speculation for months and said in August it was in talks with Japan's Mitsubishi Heavy Industries (7011.T) about some kind of cooperation. The lending facility consisted of a 250 million euros amortizing term loan and a 650 million euros revolving credit facility, Vestas said. (Reporting by Mette Fraende; Editing by Hans-Juergen Peters) Link this Share this Digg this Email Reprints

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