Cicor Secures CHF 425M Credit Facilities to Support Growth

Estimated reading time: 2 minutes

Cicor Group has signed a new CHF 425 million unsecured term and revolving credit facilities agreement, replacing its existing credit facilities well ahead of their maturity in autumn 2027. Commitments from existing and new banking partners significantly exceeded the targeted financing volume, enabling Cicor to broaden its international banking consortium and secure a flexible financing platform for its next phase of growth.

The financing was arranged by Commerzbank Aktiengesellschaft and Landesbank Baden-Württemberg as mandated lead arrangers and bookrunners with Commerzbank acting as coordinator and facility agent. The existing lenders HSBC Continental Europe S.A., Germany, IKB Deutsche Industriebank AG, Migros Bank AG and Raiffeisenlandesbank Oberösterreich, as well as the new lenders Citibank, National Westminster Bank PLC and BNP Paribas completed the consortium for the new facility. The transaction attracted strong interest from the banking market. Total commitments exceeded the targeted financing volume of CHF 425 million. The strong support from both existing and new banking partners reflects confidence in Cicor's strategy, financial performance and long-term growth prospects.

The unsecured term and revolving credit facilities agreement of CHF 425 million consists of three committed facilities:

• CHF 150 million multicurrency revolving loan facility (increased from CHF 120 million);
• CHF 125 million amortising term loan facility, which will be fully drawn at closing and repaid in annual instalments of CHF 25 million; and
• CHF 150 million bullet acquisition term loan facility

The agreement also provides an uncommitted term loan facility of up to CHF 120 million, subject to leverage requirements, lender commitments and the conditions set out in the agreement.

Following the refinancing of the existing facilities, Cicor expects to have close to CHF 300 million of available financing capacity. This provides substantial flexibility to pursue value-accretive acquisitions, invest in organic growth and fund working-capital requirements. Undrawn facilities do not increase the Group’s net debt.

Reflecting the Group's strong financial position and significantly reduced credit risk, Cicor secured improved pricing across the relevant leverage levels. The new loans have a duration of 4 years plus 2 one-year extension options. The financing combines strategic flexibility with continued financial discipline. The agreement includes a maximum net leverage ratio of 3.0x and a minimum interest-coverage ratio, defined as proforma adjusted EBITDA divided by net interest charges, of 6.0x. The new unsecured term and revolving credit facilities agreement provides Cicor with a long-term, flexible financing platform to support the continued execution of its growth strategy, fund organic expansion and pursue value-accretive acquisition opportunities.