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ID NEWS: Ahold secures new credit facility

Royal Ahold, Zaandam, The Netherlands, has announced it has entered into a revolving credit facility with ABN AMRO, Goldman Sachs, ING, JP Morgan and Rabobank. The facility provides for aggregate borrowings of EUR 2.65 billion. In addition, Ahold says that banks remain committed to provide an additional EUR 450 million back-up facility to support existing US $850 million securitization programs.

"Entering into this new credit facility is an important step in stabilizing Ahold's financial condition and demonstrates our continued access to significant liquidity," comments Henny de Ruiter, chairman of Ahold's Supervisory Board.

The international company can now turn its attention to the development of longer term solutions to the problems that have engulfed it and its U.S. Foodservice (USF) subsidiary, as a result of USF accounting issues, he adds.

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