Senvion Holding announced that it has priced €400.0 million in aggregate principal amount of senior secured fixed rate notes due 2022 at 3.875%, a reduction of 2.75% compared to the Issuer’s Existing Notes. The Issuer expects that the Senior Secured Notes will be issued on May 5, 2017.
The proceeds of the Senior Secured Notes will be used, together with cash on hand, to fund the redemption of all of the €400.0 million in aggregate principal amount of the Issuer’s 6.625% Senior Secured Notes due 2020, and pay certain fees and expenses in connection with the foregoing.
On May 5, 2017, the Issuer and its affiliates will also amend and restate its €950,000,000 revolving credit and guarantee facilities agreement (the “Revolving Credit and L/G Facilities Agreement”).
Following this amendment and restatement, the margin on the guarantee facility made available under the Revolving Credit and L/G Facilities Agreement will decrease by 50 bps and the margin on the revolving credit facility made available under the Revolving Credit and L/G Facilities Agreement will decrease by 50 bps.
“The successful completion of these transactions highlights the acceptance by the markets of our strong commitment to our markets strategy, as well as in product development, innovation and investment, and improved processes, while reducing costs, to deliver further success and ensure long-term competitiveness,” said Jurgen Geissinger, Senvion CEO. “Combined with our Move Forward efficiency program, the announced refinancing of the notes and the amendment and extension of the RCF provides a solid foundation for our continued global growth strategy.”
The Issuer estimates that the annualized interest cost savings, following the issuance of the Senior Secured Notes, the amendment and restatement of the Revolving Credit and L/G Facilities Agreement and the redemption in full of the Existing Notes on May 5, 2017, will amount to more than €14 million.
“We are pleased with the successful completion of these transactions and for the continuing trust of our banking partners and bond investors in the Senvion Group and in the work we are doing which helped to deliver an interest cost reduction in excess of 35%,” said Manav Sharma, Senvion CFO. “The interest rate improvements are expected to positively affect our margins and are expected to significantly add to the bottom line and further increase the competitiveness of the Senvion Group.”
Filed Under: Financing, News