Ceva
CEVA Group Plc Announces Successful Completion of Transformational Financing
London, UK – 1 February 2012 – CEVA Group Plc (“CEVA”), one of the world’s leading non-asset based supply chain management companies, announced today that it has successfully completed its previously announced debt and equity funded financing. Through this transaction CEVA, together with its parent CEVA Investments Limited (“CIL”), has eliminated over €850 million of debt, materially reduced its annual interest expense, significantly extended its debt maturity profile and expects improved credit ratings. CEVA completed the previously announced private issuances of $325 million of 8 ⅜% first lien senior secured notes due 2017 and $620 million of 12 ¾% senior unsecured notes due 2020 (collectively, the “Notes”). The Notes, together with cash on hand, were used to redeem or repay term loans maturing in 2013 under CEVA’s senior secured credit facilities, 8½% senior notes due 2014, senior unsecured loans due 2015, and 10% senior subordinated notes due 2016.
CIL also issued over €850 million of new equity securities to funds affiliated with Apollo Global Management, LLC (“Apollo”), which controls CIL, in exchange for the contribution and subsequent cancellation of over €500 million of CEVA indebtedness due 2018, as well as €355 million of CIL securities.
”This is a great transaction for CEVA, its employees, customers and other stakeholders,” said John Pattullo, CEO, CEVA. ”It enhances the financial resources available to the Company to continue to grow the business and increase market share.”