CEVA Logistics commences refinancing to tackle debt | Sowoll

Release time: Tuesday, July 10, 2018
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CEVA Logistics has announced the proposed refinancing of the majority of its existing debt facilities with the objective of achieving lower interest rates, longer maturities and enhanced liquidity to pursue its strategy.
 
CEVA proposes to offer, subject to market conditions and other factors, $400 million in aggregate principal amount of Secured Term Loan B due 2025 (the “New Loan”) in a private offering. It also plans to enter into a new $600 million Senior Revolving Credit and Ancillary Facility due 2023 (the “RCF”) and has received commitments from its new banking group to this extent.
 


An additional offering of debt, including by way of senior secured notes, contemplated in Euro and in an amount of approximately $350 million, might follow at a later stage. CEVA reserves the right to vary the terms and amounts of the New Loan, the RCF and any other debt, including notes, it may incur concurrently with the proposed refinancing based on market conditions or otherwise.
 
The Company expects to use the net proceeds from the refinancing, together with available cash, to fully repay its existing senior secured credit facilities as well as for general corporate purposes – it intends to repay all the outstanding approximately $580 million aggregate principal amount of its term loans due 2021.
 
Assuming a successful completion of the refinancing, the company expects to substantially lower its annual interest expense through the deleveraging and the refinancing. The Company is committed to further deleveraging with a target of 1.5x-2.0x net debt/adjusted EBITDA in the medium-term.
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