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    Debt info

    Signify successfully prices EUR 1.275 billion of Eurobonds to refinance the bridge loan arranged to finance the Cooper Lighting acquisition

    On April 30, 2020, Signify announced the successful pricing of its inaugural EUR 1.275 billion Eurobond Offering comprising of EUR 675 million fixed rate notes due 2024 with a coupon of 2.000% and EUR 600 million fixed rate notes due 2027 with a coupon of 2.375%. The notes are listed on the Official List of the Luxembourg Stock Exchange and traded on the regulated market of the Luxembourg Stock Exchange.

    The net proceeds of the notes were used to refinance the bridge loan used to finance the acquisition of Cooper Lighting, which was completed on March 2, 2020.

    Trust deeds and agency agreements

    Term Loans and Revolving Credit Facility
    In January 2020, Signify announced that it had signed new committed financing facilities to replace its former term loans structure of EUR 740 million and USD 500 million, and revolving credit facility of EUR 500 million obtained at the time of the IPO which were due to expire in May 2021. In line with our overall policy to deleverage our balance sheet Signify announced in September 2020 the repayment of EUR 350 million of the terms loans under the new committed financing facilities.

    As of September 2020 following the repayment of EUR 350 million of debt the committed term loan structure consists of EUR 50 million and USD 275 million with a maturity of three years (January 2023) and EUR 340 million and USD 225 million with a maturity of five years (January 2025).

    The new committed EUR 500 million multi-currency revolving credit facility (RCF) has a maturity of five years (January 2025), with the option to extend it twice by one year at the end of the first and second anniversary. These new facilities have similar terms to the previous facilities. To date, Signify did not have any amounts drawn under the revolving credit facility.

     

    Financial covenant
    The term loans and RCF agreement include a financial covenant providing that Signify maintains a net leverage ratio of no greater than 3.5x net debt / last twelve months reported EBITDA. The net leverage ratio may temporarily increase to 4.0x net debt / last twelve months reported EBITDA within 12 months of the closing (March 2, 2020) of the Cooper Lighting Solutions acquisition or other material acquisitions. The net leverage ratio will be tested on 30 June and 31 December each year. The covenant does not apply if the company has at least one investment grade rating, which it currently has (please see below).

    Rating agency
    Investment rating
    Outlook
    Moody's
    Baa3
    Stable
    Standard & Poor’s
    BBB-
    Stable

     

    Signify’s focus remains on maintaining a robust capital structure and on its policy to prioritize future deleveraging to support its commitment to an investment grade credit rating. In view of the COVID-19 virus outbreak, Signify announced in March 2019 to withdraw its previously announced proposal to pay a dividend of EUR 1.35 per share.

    Calendar & Events

     

    October 1, 2020

    Start of the closed period

     

    October 23, 2020

    Third quarter results 2020

     

    October 27, 2020
    Extraordinary General Meeting of Shareholders

     

    January 29, 2021

    Fourth quarter and full year results 2020

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    Contact us

     

    Contact Investor relations

    +31 20 60 91 000

    IR@signify.com