GENEVA, Switzerland, 22 February 2016 – Temenos Group AG (SIX: TEMN), the market leading provider of mission-critical software to financial institutions globally, today announces the refinancing of its existing banking facilities, with a new facility of USD 500 million.
Temenos has taken advantage of current market conditions to lock in low-cost long term financing through a new banking facility of USD 500 million, consisting of a five year revolving credit facility which expires in 2021. The facility was arranged on highly attractive terms and was provided by a syndicate of both existing lenders including Barclays, HSBC, RBS, Credit Suisse, and Banque Cantonale Vaudoise, and new lenders including Standard Chartered, ING and BNP Paribas, highlighting the strength of our banking relationships.
The facility will be used for general corporate purposes including ongoing working capital requirements and future growth opportunities.
Commenting on the announcement, Max Chuard, CFO and COO of Temenos, said:
“I am delighted we have been able to refinance our existing facility at very competitive rates whilst increasing the total amount of financing available. This has further strengthened our financial flexibility and balance sheet, ensuring we are well positioned to fund our strategic growth objectives in 2016 and the medium term. We remain focused on creating shareholder value through investing in the business and by pursuing acquisition opportunities as they arise, as long as they meet our stringent financial criteria. We are committed to disciplined capital allocation, ending 2015 at a leverage of 1.3x EBITDA in a year in which we made our largest acquisition, and having generated USD 227 million of operating cash flow as a result of our strong recurring revenue model.”