Valeo in €300 Million Loan from the European Investment Bank, Renegotiation of €941 Million in Bilateral Credit Lines and a €225 Million Syndicated Loan Agreement

September 25, 2009

Cleary Gottlieb assisted Valeo in the negotiation of €300 million financing from the European Investment Bank (EIB) designed to finance Valeo’s current research projects, which aim to reduce the fuel consumption and CO2 emissions of cars and improve active safety. The total research investment of Valeo for these projects is €645 million over four years. It will be partially financed by the EIB loan in two installments, the first of which was drawn on August 5 in an amount of €225 million.

Cleary Gottlieb also assisted Valeo in the renegotiation of certain of its bilateral revolving credit lines totaling €941 million and represented the company in its €225 million syndicated loan agreement, the main purpose of which was the replacement of the initial financial covenant based on the debt-to-equity ratio with a more appropriate covenant based on the net debt-to-EBITDA ratio.

Valeo is an independent industrial group fully focused on the design, production and sale of components, integrated systems and modules for cars and trucks and ranks among the world’s top automotive suppliers. The group has 122 plants, 61 R&D centers, 10 distribution platforms and employs around 49,000 people in 27 countries worldwide.