GlobalReport 2015

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 million facility.

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 million 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 - signed 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, this program has been increased in accordance with the relevant fact issued on 10 August of 2016 to €750 M.

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

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

In order to complete the financing of Navitaire’s acquisition the Company has issued in November 2015 a €500 million Eurobond with maturity Nov 2021.

Post-closing of the first quarter, on April 26, 2016 we agreed a new €500 million Single Currency Revolving Loan Facility, with a five-year term. This facility will be used for working capital requirements and general corporate purposes, including the refinancing of the €750 million notes (part of the Euro Medium Term Note Programme) which matured in July 2016. The €500 million Facility B of the €1,000 million Revolving Loan Facility executed in March 2015 was cancelled simultaneously.

Overview of Amadeus' Debt Structure

Debt maturity profile as of July 31, 2016 (€m)

(Click on image to enlarge)

  Description Amount Maturity Comments
Bank financing Amortising Term Loan €500m Jul 2020 _ Amortization: €125m Jan & Jul 2019, €125m Jan & Jul 2020
Capital markets financing Euro Bond €400m
Dec 2017
Nov 2021
_ Bullet in December 2017
_ Bullet in November 2021
EIB Loans Development Loans €175m

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 €300m
Max 364 days  _ Short term financing facility
Revolving Credit Facilities Revolving €500m
Mar 2020
Jul 2021
_ Available liquidity to cover working capital needs and other