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Copenhagen, 22 June 2011
Today ISS A/S, one of the world’s leading facilities services companies, announced that it has successfully received lender consent to extend certain tranches under its Senior Facilities Agreement (SFA) and to implement other amendments intended to increase the operational flexibility of the ISS Group.
On 1 June, 2011 ISS requested lenders to extend certain commitments maturing in June 2012 (The Revolving Credit Facility and the Letter of Credit facility) to December 2014 and the commitments maturing in 2013 (Facility B and Acquisition B) to April 2015.
In addition, ISS sought lender consent to permit an increase in its revolving credit facility by an additional DKK 1.5 billion (approximately EUR 200 million) and to a number of amendments to the SFA to increase its operational flexibility given that the group has almost doubled in size in terms of revenues, EBITDA and assets since the original agreement was put in place in 2005.
By the deadline for responses on 17 June, consent was obtained to all of the amendments requested. Furthermore, extensions were accepted by 96.5 per cent of the lenders in the tranches for which ISS requested extension, meaning that approximately DKK 17.9 billion of ISS’ SFA debt will be extended to either December 2014 or April 2015.
A waiver fee of 35 bps will be paid to all consenting lenders, and the extending lenders will receive an additional 25 bps fee. Once effective, a margin increase of 150 bps will apply across the extended tranches. Finally, a margin increase of 50 bps will apply for the lenders in the Group’s second lien debt that consented to the amendments, although this tranche is not being extended.
Deutsche Bank and Nordea acted as bookrunners on the amendment and extension process.
Jakob Stausholm, ISS Group CFO, commented:
“We are very pleased with the announcement today. ISS was in no hurry to refinance, but given the maturity profile of our debt and the favourable debt markets, we felt the timing was right. The consents we have received from our lenders support this assessment. We are paying the lenders consent fees and increased margins, but we think this is a fair price for extending the maturities and achieving more daily operational flexibility. We now have a better platform for continued profitable growth building on the strong results for Q1 2011, where we grew revenue by 8% and profit by 7%. In addition the consent received provides ISS and our owners with maximum flexibility for the re-launch of our postponed IPO.”
For lender enquiries
Barbara Plucnar Jensen, Head of Group Treasury, +45 38 17 62 60
For media enquiries
Kenth Kærhøg, Head of Group Communications, +45 38 17 62 05
The ISS Group was founded in Copenhagen in 1901 and has grown to become one of the world’s leading Facility Services companies. ISS offers a wide range of services such as: Cleaning, Catering, Security, Property and Support Services as well as Facility Management. Global revenue amounted to DKK 74 billion in 2010 and ISS now has more than 520,000 employees and local operations in more than 50 countries across Europe, Asia, North America, Latin America and the Pacific, serving thousands of both public and private sector customers. For more information about ISS, please visit our website at www.issworld.com.