CEVA Group Plc Enters into Commitment Letter for a New First Lien Senior Secured Term Loan Facility

19.04.2018 / 06:46

Hoofddorp, the Netherlands, 19 April, 2018 – CEVA Group Plc (“CEVA” or the “Company”) entered into a commitment letter (the “Commitment Letter”) with Deutsche Bank AG Cayman Islands Branch for a new first lien senior secured term loan facility (the “New Term Loan”) in an aggregate principal amount of $250 million. Under the Commitment Letter, Deutsche Bank AG Cayman Islands Branch has committed to provide the New Term Loan, the proceeds of which would be used to repay and terminate, refinance and replace in full the Company’s existing $250 million first lien senior secured revolving credit facility that matures in 2019 (the “Existing Revolving Credit Facility”). The New Term Loan would be incurred as an incremental term loan facility under the Company’s Fourth Amended and Restated Credit Agreement dated as of 19 March, 2014, as amended, and has the benefit of the same guarantors and collateral as the Existing Revolving Credit Facility. The New Term Loan would have a 5 year term, provided that the maturity date would automatically accelerate (x) to 1 September, 2020 if the then outstanding principal amount of 9.0% First Lien Senior Secured PIK Notes due 2020 of the Company was greater than $100 million or (y) to the maturity date of any refinancing indebtedness in respect of the 9.0% First Lien Senior Secured Notes due 2020 if such refinancing indebtedness was greater than $100 million and would otherwise mature prior to the New Term Loan. Interest under the New Term Loan would be based on the LIBOR rate plus a margin. The Company has sole discretion until 19 July, 2018 to determine whether it will exercise its right under the Commitment Letter to enter into the New Term Loan.

 

For more information, please contact:

David Urbach
SVP Corporate Development
david.urbach@cevalogistics.com
+41 799 333 083

Financial Media
Dynamics Group AG
Thomas Balmer / Philippe Blangey
tba@dynamicsgroup.ch  / prb@dynamicsgroup.ch
+41 43 268 32 32

Trade Media
Pilot Marketing
Cathy Howe
ch@pilotmarketing.co.uk
+44 208 941 5381
 

CEVA - Making business flow
CEVA Logistics, a leading global asset-light supply chain management company, designs and implements industry leading solutions for large and medium-size national and multinational companies. Approximately 56,000 employees in more than 160 countries are dedicated to delivering effective and robust supply-chain solutions across a variety of sectors where CEVA applies its operational expertise to provide best-in-class services across its integrated network. For more information, please visit www.cevalogistics.com
 

Safe Harbor Statement:
This news release may contain forward-looking statements. These statements include, but are not limited to, discussions regarding industry outlook, the Company’s expectations regarding the performance of its business or joint ventures, its liquidity and capital resources, and other non-historical statements. These statements can be identified by the use of words such as “believes” “anticipates,” “expects,” “intends,” “plans,” “continues,” “estimates,” “predicts,” “projects,” “forecasts,” and similar expressions.  All forward-looking statements are based on management’s current expectations and beliefs only as of the date of this press release and, in addition to the assumptions specifically mentioned in the above paragraphs, there are a number of factors that could cause actual results and developments to differ materially from those expressed or implied by these forward-looking statements, including whether or not the Company enters into the new first lien senior secured term loan facility, the effect of local and national economic, credit and capital market conditions, a downturn in the industries in which we operate (including the automotive industry and the air freight business), risks associated with the Company’s global operations, fluctuations and increases in fuel prices, the Company’s substantial indebtedness, restrictions contained in its debt agreements and risks that it will be unable to compete effectively. Further information concerning the Company and its business, including factors that potentially could materially affect the Company’s financial results, is contained in the Company’s annual and quarterly reports, available on the Company’s website, which investors are strongly encouraged to review. Should one or more of these risks or uncertainties materialize or the consequences of such a development worsen, or should underlying assumptions prove incorrect, actual outcomes may vary materially from those forecasted or expected. CEVA disclaims any intention or obligation to update publicly or revise such statements, whether as a result of new information, future events or otherwise.