Darmstadt, Germany - Software AG (Frankfurt MDAX®: SOW) increases its financial flexibility through a syndicated credit line totaling €300 million. The additional back-up line provides the company with a solid source of cash reserves for its transformation process and planned growth in the years to come.
Commenting on the successful debut transaction, CFO Dr. Matthias Heiden said, “We are diversifying our financing options as part of our Helix transformation to increase our strategic investment power.” He continued, “The line of credit will provide us greater flexibility in responding to different cycles in the capital markets and our business.”
The loan agreement was signed in late November 2020 with a syndicate of six domestic and international banks. Its term is three years with two extension options for one year each. The loan agreement also includes an option to increase the credit’s volume by a maximum of €100 million. Software AG was able to lock in highly attractive investment-grade terms for the loan, despite an increased market level due to COVID-19. The underwriting syndicate consists of UniCredit Bank and HSBC (serving as joint book runners) as well as BNP Paribas, Commerzbank, JP Morgan and Helaba (serving as facility agent).
The syndicated loan is available for general business purposes, including M&A, and thus strengthens the foundation of Software AG’s group financing.