Daily News: December 1, 2017

Citigroup Global, Others Arrange Nearly $2.98B Revolver for SAP


Global software developer SAP signed a new €2.5 billion ($2.97395 billion) credit facility agreement, refinancing a previous credit facility of €2.0 billion ($2.37916 billion) that would have expired in 2020.

SAP refinanced the credit facility early due to favorable market conditions. With a tenor of five years and two one-year extension options, SAP can ensure significantly improved terms and conditions for upcoming years. The facility increase will support the company’s strong growth, while the new credit line may be used for general corporate purposes. A possible future drawdown of the facility is not bound to any financial covenants.

“Our new revolving credit facility constitutes a very strong pillar in our overall financial strategy,” said SAP CFO Luka Mucic. “With this transaction, we significantly enhanced our financial flexibility and lowered our financing costs.”

Citigroup Global Markets, Commerzbank AG, Landesbank Hessen-Thüringen Girozentrale and The Bank of Tokyo-Mitsubishi UFJ acted as coordinators, bookrunners and lead arrangers in this transaction. Twenty banks invited by SAP all committed to the new facility. The successful transaction reiterates SAP’s high creditworthiness based on a strong and stable financial position.