Conclusion of a new Senior Facilities Agreement
Press Release
Neuilly-sur-Seine, April 4, 2016
Conclusion of a new €300 million Senior Facilities Agreement
Kaufman Broad concluded today a new Senior Facilities Agreement (the "2016 Senior Facilities Agreement") with a syndicate of eight international banks led by Crédit Agricole Corporate and Investment Bank acting as Coordinator, BNP Paribas, Crédit Agricole Corporate and Investment Bank, Goldman Sachs International and Natixis acting as Bookrunners and Mandated Lead Arrangers and comprising Arkea Banque Entreprises et Institutionnels, Banque Européenne du Crédit Mutuel, BNP Paribas, Crédit Agricole Corporate and Investment Bank, Goldman Sachs International Bank, La Banque Postale, Monte Paschi Banque and Natixis acting as Lenders, in particular for the purpose of refinancing the Company's existing bank debt in connection with the partial disposal by Financière Gaillon 8 of its stake in Kaufman & Broad announced on January 27, 2016 (the "Transaction"). The new loans granted under the 2016 Senior Facilities Agreement will be made available subject to certain conditions, including the completion of the Transaction.
The 2016 Senior Facilities Agreement is composed of syndicated loans under a Tranche A ("Tranche A") for a principal amount of €50 million, repayable in instalments and maturing in 2021, and a Tranche B (the "Tranche B") for a principal amount of €150 million maturing in 2021, as well as a revolving credit facility (the "Revolving Credit Facility") for a principal amount of €100 million, i.e., a total amount of €300 million. The loans under the 2016 Senior Facilities Agreement will be used to repay the loans made available under the senior facilities agreement concluded by the Company on March 19, 2014 and to finance the Company's share buy-back for a maximum amount of €50 million in connection with the Transaction.
The 2016 Senior Facilities Agreement provides for an interest rate equal to EURIBOR plus a margin that will range from 2.50% to 2.75% per year for Tranche A and the Revolving Credit Facility and from 2.75% to 3.00% per year for Tranche B, depending on the Group's leverage ratio.
In addition, the 2016 Senior Facilities Agreement stipulates, among other things, that for each half-year accounting period, starting from November 30, 2016 until the term of the agreement (i.e. 2021), the Group will be required to comply with (i) a leverage ratio below than or equal to 3.0 and (ii) a debt ratio below than or equal to 2.5 in 2016 and 2017, 2.0 in 2018 and 1.75 as from 2019.
The 2016 Senior Facilities Agreement will not require the granting of any security interest by the Company or the Group.
For more information, please consult www.kaufmanbroad.fr
Contacts
| Chief Financial Officer Bruno Coche 01 41 43 44 73 Infos-invest@ketb.com | Press Relations | |
| Fabien Aufrechter Havas Paris 01 58 47 93 71 fabien.aufrechter@havasww.com | Camille Petit Burson-Marsteller 01 56 03 12 80 contact.presse@ketb.com | |
About Kaufman & Broad - For almost 50 years, Kaufman & Broad has been designing, building and selling single-family homes in communities, apartments and offices on behalf of third parties. Kaufman & Broad is a leading French property builder and developer measured by its size, earnings and the strength of its brand.
Disclaimer: This document contains forward-looking information. This information is likely to be affected by known or unknown factors that Kaufman & Broad cannot easily control or forecast which may render the results materially different from those stated, implied or projected by the company. These risks specifically include those listed under "Risk Factors" in the Registration Document filed with the AMF on March 9, 2016 under number D.16-0125.
This document does not, and shall not, in any circumstances, constitute a public offering, nor an offer to sell or to subscribe, nor a solicitation to offer to purchase or to subscribe securities in any jurisdiction.
