Elis - Refinancing of the bank debt with a dual tranche bond

Elis successfully refinances its 2022 bank debt with a dual tranche bond issue with a 1.25% average coupon and a 7-year average maturity

Saint-Cloud, September 24, 2019 – Elis announces today that it has successfully raised €850 million through a dual tranche bond issue as follows:

• a 5.5-year tranche (maturity April 2025) for a total amount of €500 million which offers a 1% coupon;
• an 8.5-year tranche (maturity April 2028) for a total amount of €350 million which offers a 1.625% coupon.

This transaction, which offers the lowest coupons ever reached by Elis, is fully in line with the Group’s active refinancing strategy, which aims at extending maturities: The proceeds of these two bonds with a seven-year average maturity will be dedicated to the full repayment of the drawn 2022 bank term loans without any prepayment penalty.

After the completion of the transaction, the Group will have only non-bank, fixed rate debt; bank financing will be only used as back-up lines through revolving credit facilities, currently fully undrawn.

Furthermore, the Group intends to unwind the interest rate swaps that currently hedge its bank debt, leading to a stronger balance sheet:

• No significant maturity before 2023;
• Cash savings of 13m€ per year on interest payments from 2020 onwards;
• A positive impact of 10m€ on headline net result from 2020 onwards;
• Average cost of debt reduced to 1.5% per year.

The placement of the bonds was carried out by a syndicate of 10 banks: BBVA, BNP Paribas, CA CIB, Commerzbank, Danske Bank, Deutsche Bank, HSBC, ING, Natixis, and Société Générale.

Xavier Martiré, CEO of Elis, commented:

“The excellent terms obtained today demonstrate market confidence in the strength of Elis’ business model and its resilience throughout the cycle. They also reflect investors’ trust in the Group’s capacity to significantly increase its cash flow generation from 2020 onwards, notably due to the return to a normative level of investments.”

This announcement is not an offer to sell or a solicitation of an offer to buy the securities mentioned herein in any jurisdiction where such offer or sale would be unlawful. In particular, this announcement should not be published, distributed or released in the United States, in Australia or in Japan.

Securities may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons unless they are registered under the Securities Act or an exemption from the registration requirements of the Securities Act is available.  The securities mentioned in this announcement have not been and will not be registered under the Securities Act, and Elis has no intention to register any securities referred to herein in the United States or to make a public offering of the securities in the United States.

Contacts

Nicolas Buron

Investor Relations Director – Phone: 30 -

Audrey Bourgeois

Investor Relations – Phone: 25 -

Attachment