Factors affecting our Business

Amendment and Extension of Credit Facilities

On 31 July 2012 the amended and restated Senior Facilities Agreement became effective. Lenders strongly supported the commercial, technical and documentary changes which the Company had proposed on 8 June 2012.

KION Group has successfully extended a substantial portion of its Senior Facilities, including extending Revolving Credit Facility (RCF) commitments from December 2013 to December 2016 in an amount which (together with approximately €113 million of new RCF commitments received) totals €300 million, and extending approximately €800 million and approximately $200 million of Term Loan B (TLB) and Terms Loan C (TLC) from December 2014 (TLB) and December 2015 (TLC) to December 2017. The extended TLB, TLC and RCF will each carry an all cash margin, the level of which will vary depending on the leverage ratio from time to time. At the current leverage ratio the extended TLB and TLC margin will be 4.75% and the extended RCF margin will be 3.75%.

The documentary changes include a moderate increase in the acquisitions basket and increased flexibility to repay the existing second lien loan when leverage is below 4:1. In addition, the changes provide that following an IPO, KION Group will have additional flexibility to pay dividends in accordance with the current restrictions under the corporate bond and that certain financial covenants will cease to apply while a 3:1 leverage ratio is maintained.

 

Maturity profile after "Amend to Extend" and including new RCF commitments in €m

 

Maturities of total outstanding financial debt in €m

Margin

 

2012

2013

2014

2015

2016

20171)

2018

Cash5)

PIK5)

1)

While 2nd lien is outstanding, maturities of TLB, TLC and RCF to be 3 months prior to the maturity date of the 2nd lien from time to time.

2)

FX rate 1€ = 1,23035 USD as at 31/07/2012

3)

Senior Secured Notes (Fixed)

4)

Senior Secured Notes (Floating)

5)

E=EURIBOR; L=USD-LIBOR

6)

Commited line

Term Loan B1 (€)

 

 

285

 

 

 

 

E + Margin

Margin

Term Loan B2 (€)

 

 

 

 

 

411

 

E + Margin

Term Loan B1 ($301m)

 

 

2442)

 

 

 

 

L + Margin

Margin

Term Loan B2 ($105m)

 

 

 

 

 

852)

 

L + Margin

Term Loan C1 (€)

 

 

 

285

 

 

 

E + Margin

Margin

Term Loan C2 (€)

 

 

 

 

 

383

 

E + Margin

Term Loan C1 ($298m)

 

 

 

2422)

 

 

 

L + Margin

Margin

Term Loan C2 ($108m)

 

 

 

 

 

882)

 

L + Margin

Term Loan D (2nd Lien)

 

 

 

 

202

 

 

E + Margin

Margin

Term Loan G (Shareholder Loan)

 

 

 

 

 

 

114

E + Margin

Capex Facility

28

18

 

 

 

 

 

E + Margin

Term Loan H1a (Fixed)3)

 

 

 

 

 

 

325

7.875%

Term Loan H1a (Floating)4)

 

 

 

 

 

 

175

3-M-E + 4,25%

Total outstanding financial debt

28

18

529

527

202

967

614

 

 

 

 

 

 

 

 

 

 

 

 

Revolving Credit Facility 16)

 

113

 

 

 

 

 

E + Margin

Revolving Credit Facility 26)

 

 

 

 

300

 

 

E + Margin

Business Restructuring and Redesign

Financial Services Segmentation

Procurement Price Volatility

Procurement, Suppliers and Purchasing

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