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

Facility Amount
($ equivalent)
Currency Maturity Rates
Term Loan B 475 USD 2025 L+375
(leverage step down to L+350)
Notes 350
(EUR 300)
EUR 2025 5.25%
Revolving
Credit Facility
585 multi currency 2023 L+237.5
ABS/ABL (Existing) 400 multi currency 2020 TBD
(Existing: L+175 to L-250)

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

Contact us

For your inquires, please contact us directly

Investor Relations Contact

Pierre Benaich,
SVP Investor Relations
pierre.benaich@cevalogistics.com investors@cevalogistics.com

Tel: +41 41 547 0048


Registered office

The registered office address of CEVA is:

CEVA Logistics AG
Grabenstrasse 25
6340 Baar
Switzerland

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