Micro Focus International plc Successful Completion of Term loan refinancing (4363O)
May 29 2020 - 12:04PM
UK Regulatory
TIDMMCRO
RNS Number : 4363O
Micro Focus International plc
29 May 2020
29 May 2020
Micro Focus International plc
Successful Completion of Term loan refinancing
Micro Focus International plc ("Micro Focus") announces that it
has successfully priced and allocated a Euro 600 million and a USD
650 million Senior Secured Term Loan B (together, the
"Facilities"), increased from Euro 400 million and USD 400 million
respectively at launch in response to strong investor demand. The
new 5-year Facilities, along with $150 million of existing cash
reserves, will be used by Micro Focus to fully refinance its
existing Senior Secured Term Loan B due November 2021 and pay
associated fees and expenses (the "Transaction").
Final pricing for the new 5-year Facilities is 4.50% above
EURIBOR (subject to a 0.0% floor) at an original issue discount of
3.0% on the Euro Tranche, and 4.25% above LIBOR (subject to a 1.0%
floor) at an original issue discount of 2.5% on the US Dollar
denominated tranche.
Following the completion of the Transaction, the average
maturity of Micro Focus's debt capital structure has been extended
from 3.2 years to 4.2 years, with the next tranche of Term loans
due for repayment in June 2024.
The transaction was led by JP Morgan in conjunction with
Barclays, HSBC, Natwest, Bank of America and Goldman Sachs. Lazard
acted as the company's advisers.
Stephen Murdoch (Chief Executive Officer) said:
"This very positive outcome demonstrates the strength of the
Micro Focus proposition and the cash generative qualities of our
recurring revenue model. This is an important step as we work to
deliver on the operational improvements we set out in our Strategic
and Operational Review in February."
This announcement contains information that was previously
Inside Information, as that term is defined in the Market Abuse
Regulation (Regulation (EU) No 596/2014 of the European Parliament
and of the Council of 16 April 2014) and successor UK
legislation.
Enquiries:
Micro Focus Tel: +44 (0)1635 32646
Stephen Murdoch, CEO Investors@microfocus.com
Brian McArthur-Muscroft, CFO
Ben Donnelly, Investor relations
Brunswick Tel: +44 (0) 20 7404 5959
Sarah West MicroFocus@brunswickgroup.com
Jonathan Glass
Notes to Editors:
About Micro Focus
Micro Focus (LSE: MCRO.L, NYSE: MFGP) is a global enterprise
software company supporting the technology needs and challenges of
the Global 2000. Our solutions help organizations leverage existing
IT investments, enterprise applications and emerging technologies
to address complex, rapidly evolving business requirements while
protecting corporate information at all times. Our product
portfolios are Security, IT Operations Management, Application
Delivery Management, Information Management & Governance and
Application Modernization & Connectivity. For more information,
visit: www.microfocus.com
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
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of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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