Fugro is partly financed with loans: a bank facility, US private placements and convertible bonds.
Revolving credit facility
Fugro has a revolving credit facility in place with seven banks. On this 5-year facility of EUR 575 million, as per 30 June 2017, EUR 389 million has been drawn. The interest is EURIBOR plus 110 to 190 basis points, dependent on the level of net debt/EBITDA.
US private placements
Fugro has private placement loans with US and UK investors (‘United States Private Placement notes’ or USPPs). These loans, placed in 2002 and 2011, carry a weighted average interest rate of around 5.6%.
Both the revolving credit facility and the private placement loans contain certain covenant requirements, most notably net leverage (net debt/EBITDA) of below 3.0 and fixed charge cover of above 1.8.
2021 Convertible bond
In October 2016, Fugro issued EUR 190 million in subordinated convertible bonds maturing in 2021. The proceeds were fully used for early repayments on the USPP notes. The related bond amount and interest costs are excluded from the covenant ratios. The subordinated convertible bonds carry a coupon of 4.0% and an initial conversion price of EUR 19.4416. The bonds are trading on the Open Market (Freiverkehr) segment of the Frankfurt Stock Exchange (symbol: ISIN: XS1508771216).
Key characteristics of the 2021 convertible bond
Debt maturity profile per 30 June 2017 (in millions, euro equivalents)
2024 Convertible bond
In October 2017, Fugro issued EUR 100 million in subordinated convertible bonds maturing in 2024. The proceeds will be offered to the USPP note holders for early repayment. The related bond amount and interest costs are excluded from the covenant ratios. The subordinated convertible bonds carry a coupon of 4.5% and an initial conversion price of EUR 14.9412. The bonds are expected to be issued on 2 November 2017 and trading on the Open Market segment of the Frankfurt Stock Exchange no later than 30 days after the issue date.
Key characteristics of the 2024 convertible bond