We advised CARGOUNIT, a leading locomotive leasing business in Central and Eastern Europe, on a financing agreement with a consortium of leading Polish and international banks consisting of BNP Paribas Bank Polska S.A., PKO Bank Polski S.A., Siemens Bank GmbH, Bank Millennium S.A., ING Bank Śląski S.A., Bank Pekao S.A. and Bank Ochrony Środowiska S.A.
The new term and revolving facilities agreement amounting to a total of PLN 615 million (with additional optional incremental facility of up to PLN 100 million) will be used, among other things, to finance the acquisition of environmentally friendly electric locomotives and modernisation of the companies shunters' fleet.
The team also advised on the hedging strategy relating to the financing and intercreditor arrangements.
The transaction follows the acquisition of CARGOUNIT by the Three Seas Initiative Investment Fund, a dedicated commercial fund targeting infrastructure investments in CEE. The acquisition was finalised in Q4 2020 and was the first investment of the Fund.
The Clifford Chance team advising on the financing included Andrzej Stosio (Partner co-heading the Warsaw Banking & Finance Department), Irena Floras-Goode (Counsel), Maksymilian Jarząbek (Senior Associate), Dominika Wróblewska (Associate), Piotr Węcławowicz (Associate) and Mateusz Ciechomski (Associate).