Pfäffikon SZ, Switzerland – July 20, 2012 – Oerlikon has today repaid in full the existing Syndicated Credit Facility related to the 2010 financial restructuring, which successfully completes the Company’s refinancing. The new diversified financing package consists of a Swiss Bond and a new Syndicated Credit Facility that will reduce financing costs by around CHF 40 million beginning 2013. In addition to cost savings, the new package allows greater flexibility and was provided on an unsecured basis. Oerlikon CEO Dr. Michael Buscher said: “Oerlikon’s successful refinancing allows us to systematically continue on our path of creating value for our stakeholders by significantly reduced financing costs and greater strategic and operational flexibility.”
The cancellation of Oerlikon’s old Syndicated Credit Facility two years ahead of maturity becomes effective today with the full repayment of all outstanding debt under the old Syndicated Credit Facility, as well as the early redemption penalty on Facility C and accrued interest (including PIK).
The starting point of this comprehensive refinancing was the agreement of a new, unsecured Syndicated Credit Facility amounting to CHF 800 million on June 5, 2012. The new facility includes a CHF 700 million Credit Facility (Facility A) comprising of a revolving facility of CHF 450 million and an ancillary facility of CHF 250 million with a term of three years and two additional one-year extension options. The new Syndicated Credit Facility carries an initial margin of 250 basis points per year. The initial syndicate consisted of Commerzbank Aktiengesellschaft, Credit Suisse AG, Deutsche Bank AG, Société Générale Corporate & Investment Banking, The Royal Bank of Scotland plc, UBS AG and UniCredit Bank AG. On July 13, 2012, the General Syndication was completed and a Syndication Agreement with six additional banks was signed including DBS Bank Ltd, HSBC Bank plc, JPMorgan Chase Bank, N.A., KBC Bank Deutschland AG, Landesbank Baden-Württemberg and Zürcher Kantonalbank.
Complementary to the Syndicated Credit Facility was the placement of a domestic Bond, which was issued on June 13, 2012 – Oerlikon’s first transaction on the Swiss Bond market – and settled on July 13, 2012. Oerlikon successfully placed a 4 year CHF 300 million straight bond with a coupon of 4.25 %. The interest will be paid annually starting on July 13, 2013. The issue was led by UBS Investment Bank, Credit Suisse AG, Deutsche Bank AG and The Royal Bank of Scotland plc. On July 13, 2012 all conditions precedent to the new Syndicated Credit Facility were fulfilled and the effectiveness of the new Facility was confirmed. The twelve month CHF 100 million optional term loan (Facility B) has been cancelled in the light of the successful issuance of the domestic Bond exceeding expectations. Today’s repayment used proceeds from the domestic Bond (some CHF 300 million), initial drawing from the new Syndicated Credit Facility (some CHF 230 million) and the remaining amount from existing cash.
CFO Jürg Fedier comments: “We have been able to build a strong financial foundation for the further development of Oerlikon and we are pleased with the regained confidence of the financial markets in our Company based on our improved underlying operational and financial performance.”