Signify signs €1.24 billion, $500 million of committed facilities

By Sarah Lizee

Olympia, Wash., Jan. 6 – Signify signed new committed term loans for €400 million and $275 million due January 2023 and €340 million and $225 million due January 2025, and a new €500 million multi-currency revolver matures January 2025.

The revolver has the option to extend the maturity twice by one year at the end of the first and second anniversary.

The new facilities replace the company’s current term loans of €740 million and $500 million and its existing revolver of €500 million which were due to expire in May 2021.

The new facilities were put in place with a syndicate of 16 international relationship banks.

The new term loans and revolver include a financial covenant providing that Signify maintains a net leverage ratio of no greater than 3.5x EBITDA. The covenant does not apply if the company has at least one investment-grade rating.

The committed bridge financing, secured by the company for the intended acquisition of Cooper Lighting Solutions, is expected to be refinanced in the next few months. Closing of this transaction is expected in the first quarter of 2020.

The company said the new term loan structure, coupled with the anticipated strong future free cash flows, is expected to allow the company to drive down its anticipated net leverage ratio of around 2x at the time of closing of the Cooper Lighting acquisition to below 1x net debt/EBITDA within three years.

The lighting company is based in Eindhoven, the Netherlands.

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