NORMA Group AG successfully completes refinancing of its credit facilities after IPO
Maintal, 18 April, 2011
- Increased financial flexibility due to reduced total debt and attractive credit margin
Following its successful initial public offering (IPO), NORMA Group AG (“Norma Group”), a global market and technology leader in engineered joining technology, has agreed to completely refinance its credit facilities.
As a result of the IPO, the company received about EUR 147 million from the capital increase. The net proceeds were used partially to pay off financial liabilities. In addition, NORMA Group agreed on a comprehensive new refinancing scheme. The credit facility consisting of a term debt of more than EUR 250 million and a revolving credit facility of more than EUR 125 million has a total volume of EUR 375 million and a matures in five years. The group of underwriters includes Commerzbank AG, SEB AG and Unicredit Bank AG.
NORMA Group used EUR 250 million from the credit facility in addition to EUR 135 million realised from the capital increase in order to fully repay existing loans taken out in 2007. Among other debts, NORMA Group is paying off a mezzanine credit agreement in the amount of EUR 53.5 million and the shareholder loan of about EUR 11.9 million extended by 3i Investments plc.
"The capital increase we realised with the IPO combined with the comprehensive refinancing of our credit facilities has enabled us to significantly optimise our financing structure," said Dr. Othmar Belker, Chief Financial Officer of NORMA Group. "We are now well positioned to take full advantage of future growth trends in the international markets for engineered joining technology. With our improved cost and capital base we have established a solid foundation for sustainable, profitable growth."
By paying off these liabilities, NORMA Group has substantially strengthened its equity base. The company's equity ratio has risen from 13% before the IPO to a current level of notably above 30%. Thus, NORMA Group has significantly improved its operational flexibility. The company plans to use the revolving credit line as part of the new financing structure for further acquisitions and financing activities in the operational business. In order to hedge the risk of interest rate movements, eligible hedging instruments were applied to the overall refinancing.