Debtholders

Refinancing

• We have repaid significant debt with proceeds from IPO – net debt down to $1,132 million as of 30 June
• Comprehensive refinancing of bank debt and notes completed in early August:
  
  • $475m Term Loan, upsized from original $400m in view of strong demand
  • €300m Senior Secured Notes
  • $585m Revolver and ancillary facility¹
• Tender Offer for remaining 9% PIK Notes with 34% acceptance; outstanding Notes repaid early September
• Key benefits new facilities
  
  • Higher flexibility to pursue strategy; public company style covenants
  • Longer maturities – 5-7 year tenor
  • Enhanced liquidity
  • Much lower interest cost
• Currently reviewing asset-backed facilities

Financial Policy

• Deleveraging to current levels is transformative for CEVA
  
  • Very positive reactions, will create opportunities and accelerate growth
  • Company would have been cash flow positive in 2017, pro forma for new capital structure
• CEVA has a strong strategic platform (service portfolio, geographic footprint, competencies) – priority is to develop business organically; we have flexibility to do selective, small M&A at later stage to strengthen in certain areas
• Target to pay a first small dividend in FY19 for FY18, larger payouts only once further delivered
• Committed to further deleveraging towards 1.5x-2.0x Net debt / Adjusted EBITDA over medium term

Current Securities in Issue

Comments

• One-tier senior secured structure (except for ABS/ABL)
• Instruments have received same BB- / B1 credit rating as company
• Have achieved much lower interest rates, pleased with outcome
• >$100 m Finance expense savings expected vs. old capital structure, subject to base rates, achieved margins and drawings

Prospectus Notes

The prospectus can be downloaded here