On 4 April 2006 the Company entered into an agreement for a €375.0 million, multi-currency committed five year credit facility (the "Credit Facility"), which consists of a €200.0 million revolving and a €175.0 million term facility. The term facility is amortised by equal quarterly repayments as follows in the table below.
The Credit Facility provides that utilisations may be in euros or other freely available currencies, as agreed. The interest payable is calculated at the relevant inter-bank rate plus the applicable margin. The Credit Facility contains a number of operating covenants, including restrictions on subsidiary borrowings, restrictions on lending and giving guarantees for financial indebtedness, and restrictions on the disposal of material assets. It also contains a number of financial covenants which include required ratios of consolidated net debt to consolidated EBITDA of the Group, operating profit coverage and cap on distributions. The Group was in compliance.
In February 2009 Oriflame Cosmetics S.A. agreed a €130m three-year Term Loan and Revolving Credit Facility with its core banks, with which Oriflame will increase its co-operation. The Facility will be used to support further growth and provides financing in addition to the existing €375m credit facility, which is to be renegotiated by April 2011.
The Facility was co-ordinated by SEB. Nordea and SEB were Mandated Lead Arrangers. The Facility was oversubscribed and the agreed amount was increased above what was initially requested. The following banks joined the Facility (listed in alphabetic order): DnB NOR Bank (Co-Arranger), ING Bank NV (Co-Arranger), Nordea Bank AB (publ) (Mandated Lead Arranger) and Skandinaviska Enskilda Banken AB (publ) (Mandated Lead Arranger).
In December 2009 Oriflame Cosmetics S.A. signed a €400m three-year Revolving Credit Facility (the 'Facility') with its core relationship banks. The Facility will be used for general corporate purposes and will refinance Oriflame's existing credit facilities of €375m (signed April 2006) and €130m (signed February 2009). The Facility is co-ordinated by Nordea and SEB, who also acted as Bookrunners. DnB NOR ASA (Sweden Branch), ING and The Royal Bank of Scotland plc joined as Mandated Lead Arrangers. The Facility was increased after a substantial oversubscription. The following banks joined the Facility:
DnB NOR ASA, Sweden Branch, Mandated Lead Arranger
ING, Mandated Lead Arranger
The Royal Bank of Scotland plc, Mandated Lead Arranger
Raiffeisen Zentralbank Österreich Aktiengesellschaft, Arranger
HSBC Bank plc, Arranger
In April 2010 Oriflame successfully completed a $165m issue of private placement notes. Oriflame chose to enter the private placement market in order to diversify its funding base. The transaction was very well received by investors and was close to two times oversubscribed. The notes mature in 2015, 2017 and 2020. The Royal Bank of Scotland acted as sole Agent and managed the hedging process to swap the financing to EUR.
In May 2011 Oriflame Cosmetics S.A. signed two Revolving Credit Facilities, amounting to €430m in total with its core relationship banks. A €330m five-year Revolving Facility was joined by ING, HSBC Bank plc, Nordea, RB International and SEB. A €100m one-year Revolving Facility was joined by Nordea and SEB. The Facilities will be used for general corporate purposes and will refinance Oriflame's existing credit facilities of €400m (signed December 2009). The Facility was co-ordinated by Nordea and SEB, who also acted as Bookrunners and Mandated Lead Arrangers together with ING and HSBC Bank plc. RB International participated as a Lead Arranger.
ING, Mandated Lead Arranger and Bookrunner
HSBC Bank plc, Mandated Lead Arranger and Bookrunner
Nordea, Bookrunner, Joint Co-ordinator and Mandated Lead Arranger
RB International, Lead Arranger
SEB, Bookrunner, Joint Co-ordinator and Mandated Lead Arranger
In July 2011 Oriflame Cosmetics S. A. successfully completed a $195m and €25m issue of private placement notes. The transaction was very well received by international investors and was more than two times oversubscribed. The notes mature in 2018, 2021 and 2023.
HSBC Securities (USA) Inc acted as Sole Bookrunner and Lead Placement Agent in the transaction process, where Nordea and SEB had the role as co-Agents. HSBC Securities (USA) Inc coordinated the hedging process to swap the financing into EUR, where the core relationship banks participated.
As a result of the recent successful issue of private placement notes, the €100m one-year Revolving Facility signed in May 2011 will be cancelled.
Oriflame Cosmetics Oriflame does not have credit ratings.