Micro Focus Int plc

Successful Term Loan

RNS Number : 5581Y
Micro Focus International plc
17 January 2022
 

17 January 2022

 

 

Micro Focus International plc

Successful Term Loan and Revolving Credit Facility Refinancing

 

Micro Focus International plc ("Micro Focus" or the "Company") is pleased to announce that it has successfully priced and allocated a Euro 750 million and a USD 750 million Senior Secured Term Loan B (together, the "Facilities"). The new 5-year Facilities will be used by Micro Focus to fully refinance its existing Senior Secured Term Loan B Euro facility due June 2024 as well as partially refinance the existing Senior Secured Term Loan B USD facilities due June 2024 (the "Transaction").

Final pricing for the new 5-year Facilities is 4.00% above EURIBOR (subject to 0% floor) at an original issue discount of 0.5% on the Euro denominated tranche, and 4.00% above SOFR and CSA (subject to 0.5% floor) at an original issue discount of 1.0% on the US Dollar denominated tranche.

Following the consummation of the Transaction, the average maturity of Micro Focus's debt capital structure has been extended from 2.7 years to 3.6 years.

The transaction was led by JP Morgan in conjunction with HSBC, Citi, Natwest, Bank of America and Goldman Sachs.  

In addition, Micro Focus has extended its Revolving Credit Facilities ("RCF") by 18 months to December 2026, on substantially the same terms as before except that Micro Focus now has greater flexibility to utilise the facility.  The $250m RCF was implemented with the same group of banks.

Numis acted as Debt Adviser to Micro Focus on these transactions.

Matt Ashley, Chief Financial Officer:

"This transaction demonstrates the strength of the Micro Focus proposition and the cash generative qualities of our recurring revenue model. We would like to thank our debt investors for their continued support as we look to deliver on our strategic priorities over the next two years and beyond."

 

 

 

Enquiries:

Micro Focus Tel: +44 (0)1635 32646

Stephen Murdoch, CEO                                     [email protected]

Matt Ashley, CFO

Ben Donnelly, Investor relations

 

 

Brunswick  Tel: +44 (0) 20 7404 5959

Sarah West    [email protected]

Jonathan Glass 

 

Numis    Tel: +44 (0) 20 7260 1000

Mike Beadle

Robyn Hawkins

 

 

 

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 Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [email protected] or visit www.rns.com.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.
 
END
 
 
MSCBFMPTMTIBBBT