sap’s successful refinancing of eur 1.5 bn credit facility
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SAP NewsTRANSCRIPT
Case StudySAP’s successful refinancing of EUR1.5 billion credit facility
SAP is the world’s leading provider of enterprise
application software. Like other major companies,
the company maintains access to credit facilities
for liquidity purposes and had an existing
facility which was set up in 2009. RBS had led
this transaction, which won widespread praise
for being one of the first deals to re-open the
corporate loans market after the financial crisis,
although the facility was restricted to a three year
maturity as participating banks were wary of the
still difficult market environment.
As conditions improved in the loan market, RBS
and SAP were quick to identify the potential to
refinance this facility. However, at the time SAP
was fully engaged on completing its USD5.8
billion acquisition of US company Sybase in the
second half of 2010, so it was October before the
company was ready to look at detailed proposals.
When asked to outline its plans for refinancing,
RBS immediately produced a comprehensive
proposal, in line with a challenging deadline for
submission, which clearly added value. The plans
covered all the relevant areas, including advice on
whether to amend or extend the credit facility, the
timing of the transaction and the facility size.
RBS was mandated as bookrunner and lead
arranger in early November. Christoph Weaver,
Managing Director, RBS Loans Markets
Origination, said “This is when our machinery
really starts whirring, with Loans Markets
Origination, Syndicate and Sales all knowing
their precise roles. We had prepared a kick-off
booklet for the company within 24 hours of being
mandated, mapping out the timetable for the
execution process over the next five weeks, and
this proved remarkably accurate.”
After extensive market sounding performed by
the treasury team of the customer, the resulting
transaction in December was remarkably
smooth. Syndication was extremely successful
and more than EUR2.8 billion was raised from a
total of 30 banks. The transaction was the most
competitively priced in Germany in 2010, and
was among the most tightly priced in Europe
during the year.
As Joerg Wiemer, Senior Vice President and Head
of Global Treasury of SAP said, “This transaction
rounded off a busy year for SAP in terms of
engagement with capital markets. Given the
substantial amount of acquisition financing that
was required in 2010 for the purchase of Sybase,
it is a testament to the very strong creditworthiness
of SAP and the abilities of RBS, along with the
other bookrunners, that the refinancing of the
revolving credit facility was delivered so smoothly
and on such markedly improved terms.”
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Highlights
• SAPcompletedaEUR1.5billionrefinancingofanexistingrevolvingcreditfacility, extending the maturity from three to five years
• ThetransactionwasthemostcompetitivelypricedinGermanyin2010,andwas among the most tightly priced in Europe during the year
• RBSdeliveredontherefinancingfortheclientfromstarttofinish,advisingon developments in the loan market, putting forward detailed proposals and executing to ensure a successful outcome
The Client’s RequirementSAP wanted to move quickly to take advantage of improved pricing in the loan market, refinancing an existing credit facility dating from 2009 when market conditions were less favourable
The SolutionAfter SAP had thoroughly screened the market, RBS responded within 24 hours to the client’s request for initial detailed proposals about refinancing and, after being appointed as bookrunner and lead arranger, moved from mandate to successful execution within five weeks
EUR 1,500,000,000Revolving Credit FacilityBookrunner and Mandated Lead Arranger December 2010
The contents of this document are indicative and are subject to change without notice. This document is intended for your sole use on the basis that before entering into this, and/or any related transaction, you will ensure that you fully understand the potential risks and return of this, and/or any related transaction and determine it is appropriate for you given your objectives, experience, financial and operational resources, and other relevant circumstances. You should consult with such advisers as you deem necessary to assist you in making these determinations. The Royal Bank of Scotland plc, The Royal Bank of Scotland N.V or an affiliated entity (“RBS”) will not act and has not acted as your legal, tax, regulatory, accounting or investment adviser or owe any fiduciary duties to you in connection with this, and/or any related transaction and no reliance may be placed on RBS for investment advice or recommendations of any sort. RBS makes no representations or warranties with respect to the information and disclaims all liability for any use you or your advisers make of the contents of this document. However this shall not restrict, exclude or limit any duty or liability to any person under any applicable laws or regulations of any jurisdiction which may not lawfully be disclaimed. RBS and its affiliates, connected companies, employees or clients may have an interest in financial instruments of the type described in this document and/or in related financial instruments. Such interest may include dealing in, trading, holding, or acting as market-makers in such instruments and may include providing banking, credit and other financial services to any company or issuer of securities or financial instruments referred to herein.
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1647-0411 May 2011
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