Temenos Optimises Funding and Strengthens Balance Sheet

Press Releases, March 26, 2013

Temenos – Company

Company launches bond and refinances existing facilities to secure favourable long-term rates 

GENEVA, Switzerland – 26 March 2013 – Temenos (SIX: TEMN), the market-leading provider of mission critical software to the financial services industry, today announces the issue of a CHF100m (USD 106m) bond together with the refinancing of its existing USD 350m banking facilities, which were due to expire in February 2014.

Temenos has taken the step to launch a publicly traded bond and to refinance its existing facilities in order to take advantage of the current favourable market capital conditions and lock in low-cost long term financing. 

The CHF 100 million senior unsecured bond, Temenos’ first ever public debt issuance, has a coupon of 2.75%, paid annually on 25 July, and matures in July 2017. The bond received significant demand from institutional and retail investors and was oversubscribed, evidencing confidence in the strong financial and operational performance of the company and in its strategy and prospects.

Temenos intends to use the proceeds from the offering for general corporate purposes, which may include acquisitions and the repayment of existing debt. Arranged by Barclays, Credit Suisse and RBS as joint lead managers and BZ Bank as co-lead manager, the bond will be listed on the SIX Swiss Exchange by the end of April 2013.

The new USD 350m banking facilities comprises a USD 100m term loan and a revolving credit facility of USD 250m, both of which expire in March 2017. The four-year facilities were arranged on highly attractive terms and were provided by the same five large financial institutions (Barclays, RBS, Credit Suisse, HSBC and Bank Cantonale Vaudoise) as the previous facilities, both of these facts highlighting the strength of relationship that Temenos enjoys with its lenders. 

Max Chuard, CFO of Temenos, said: 

“We are delighted to have been able to refinance our existing facilities at such competitive rates, capitalising on the very strong relationship we have with our group of lenders. The issuance of a publicly traded bond, our first, clearly demonstrates the growing maturity of the company and our ability to tap various financing sources to achieve the best terms. With favourable long term financing secured, Temenos can continue to advance its long-term corporate goals and extend its market leadership to deliver strong and sustained growth in shareholder value. Temenos remains committed to capital discipline and targets an optimal leverage of 1.0x to 1.5x EBITDA, although retains the flexibility to increase its leverage to make acquisitions which fit its strict financial criteria, including being cashflow and earning accretive within 12 months. At the end of the 2012, the company had leverage of only one times EBITDA despite making multiple acquisitions over recent years.”