CEVA Logistics has completed a comprehensive refinancing package, totaling $1.4bn.
The company raised €300m of 5.25% senior secured notes due 2025, a $475m secured term loan B due 2025 and a $585m senior revolving credit and ancillary facility due 2023.
The Switzerland-listed logistics company said that it has “achieved attractive terms and was able to upsize the term loan in view of strong demand”.
A company statement added: “CEVA has repaid or redeemed all its previous credit facilities and notes, but for approximately $290m principal amount of the 9% First Lien Senior Secured Notes which had not been tendered for early purchase in the cash tender offer and accordingly will be redeemed early September 2018.”
Through an initial public offering (IPO) in May this year and via the refinancing, CEVA has raised approximately $1.2bn in equity and approximately $1.4bn in new debt facilities.
In addition, the company has approximately $450m of existing asset-backed security (ABS) and asset-backed lending (ABL) facilities.
CEVA has achieved longer maturities, more flexibility, enhanced liquidity and much lower interest cost through the deleveraging and the refinancing. Its annual interest costs will reduce by more than $100 million, subject to prevailing Libor rates.
Peter Waller, CEVA’s chief financial officer, said: “We are very pleased with the outcome of our refinancing and that we have successfully positioned the ‘new CEVA’ also in the debt capital markets.
“Our stronger financial position will allow us to accelerate revenue growth with existing and new clients. By further improving EBITDA and through much lower interest cost, we can generate positive cash flows for the second half of 2018 and onwards.”