GlobalReport 2014

Financial strategy and debt facilities

At the time of the IPO (April 2010), Amadeus' financing facilities (LBO type) were not optimal for a public company. Financing faciilties had a security package attached (pledge ovel all company's assets in favor of lenders) which was quite restrictive from the operational perspective and contained inflexible terms & conditions making impossibe any improvement.

In order to adapt the financing structure to a public company profile and to optimize terms & conditions in May 2011 Amadeus signed an agreement with a group of banks to refinance its existing debt through a new senior unsecured € 2,700 M faciity with limited covenants, longer maturities and significan lower cost.

The Group's long term financial strategy followed in the (turbulent) period 2010-2014 has pursued the following objectives:
             - reduce cost of financing by reducing the credit spreads
             - diversify funding sources as much as possible to compensate banks deleverage process and the consequent unwillingness to lend money to corporates
             - increase flexibility
             - extend the maturity profile of our debt

To pursue Amadeus’ long term financing strategy and to improve the terms & conditions of the €2.700 facility the company has performed several refinancing transactions along the period 2010-2013 being the most relevant the following
                € 750 M -  5 year Eurobond - Coupon 4.875% - issued in July 2011
                € 200 M - European Investment Bank Loan - 9 year - fixed coupon - signed in May 2012
                € 150 M  - European Investment Bank Loan - 9 year - fixed coupon -signed in April 2013
                € 200 M - RCF -sgned in April 2012 with 2.5 maturity tenor
                € 300 M  - RCF -signed in November 2013 - with a 5 maturity tenor

In February 2014 we completed the acquisition of Newmarket Inc for an amount of USD 500m. This acquisition was financed through a 5 years Amortizing Term Loan of USD 500m. In December 2014 the Company refinanced this USD Term Loan with a Euro Bond of €400m and same duration but with a lower margin (coupon 0.625%)

Following the strategy of diversifying its sources of financing Amadeus set up in December 2014 a European Commercial Paper Program amounting to €500 M.

In March 2015 Amadeus signed a new €1.000 RCF with a group of 12 banks.

In July 2015 Amadeus signed a new facility agreement amounting €500 with the same group of 12 banks to partially finance the Navitaire acquisition.

Overview of Amadeus' Debt Structure

Debt maturity profile as of June 30, 2015 (€m)

(Click on image to enlarge)

  Description Amount Maturity Comments
Bank financing Amortising Term Loan €96m1 Nov 2015 _ Amortising: bi-annual payments, last payment in Nov 2015

_ €96m1 in US Dollar
Capital markets financing Euro Bond €750m
€400m
Jul 2016
Dec 2017
_ Bullet in July 2016
_ Bullet in December 2017
 
EIB Loans Development Loan €200m

€150m
May 2021


May 2022
_ First loan: Senior loan to finance R&D investment in IT.
Amortising: bi-annual payments from Nov 2015 (first tranche of €150m) and Nov 2016 (second tranche of €50m), last payment in May 2021

_ Second loan: Senior loan to finance R&D investment in
Distribution. Amortising: bi-annual payments from Nov 2017, last payment in May 2022
ECP European Commercial Paper €296m
 
Max 364 days  _ Short term financing facility
Revolving Credit Facilities Revolver €1000m Feb 2020 _ Available liquidity to cover working capital needs and other

1. USD denominated debt converted into EUR using the USD/EUR exchange rate of 1.1189 (official rate published by the ECB on June 30 2015)