Financial strategy and debt facilities
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.
The Group's long term financial strategy followed in the (turbulent) period 2010-2014 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 November 10, 2015 (€m)
(Click on image to enlarge)
|Bank financing||Amortising Term Loan||€85m1||Nov 2015||
_ Amortising: bi-annual payments, last payment in Nov 2015
_ €85m1 in US Dollar
|Capital markets financing||Euro Bond||
_ Bullet in July 2016
_ Bullet in December 2017
_ Bullet in November 2021
|EIB Loans||Development Loans||
_ 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||
||Max 364 days||_ Short term financing facility|
|Revolving Credit Facilities||Revolving||€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 1.1203 (official rate published by the ECB on September 30 2015)