- Getronics has paid its bondholders EUR 325 million in cash in accordance with the previously announced partial early repayment and annuity scheme agreed by the bondholders
- Trading in the 2008 Bonds started on 25 June 2003
- Bondholder’s principal debt position now reduced to circa 250 million
- The Company has agreed a term sheet for a new credit facility with ABNAMRO, ING and Barclays
Getronics paid its bondholders EUR 325 million in cash yesterday as a partial early (re) payment following the approval of the proposal to amend the terms of the bonds given by the bondholders on 10 June. The former 2004 and 2005 subordinated convertible Bonds now trade as one series of 2008 Instalment Bonds (to be repaid in instalments, as previously announced).
The swift and succesful implementation of the key parts of the Entrepreneurial Solution has resulted in a bondholder’s principal debt position at the half-year of circa EUR 250 million.
Further more the Company has agreed a term sheet for a new credit facility with ABN AMRO, ING and Barclays. The date of signing of the agreement is expected to be 30 July 2003. The new facility will amount to EUR 100 million and will also allow the release of the Company’s cash collaterals of approximately EUR 55 million. This facility will replace the revolving credit facility announced on 23 December 2002, consisting of tranch A for EUR 125 million and tranch B for EUR 75 million. As previously disclosed, under tranch A the Company was able to draw a maximum unrestricted amount of EUR 75 million and faced restrictions on the use of circa 55 million of working capital for cash collaterals. Tranch B was only usable in conjunction with the cancelled Revised Invitation to Tender.
This new facility reflects the potential working capital needs of the Company following the implementation of the main constituent parts of the Entrepreneurial Solution.
Klaas Wagenaar, Vice Chairman comments: “The advantage of the new credit facility is that the Company will have more cash headroom available to it with an additional EUR 25 million of credit freely available and full usage of EUR 55 million of cash collaterals. The new credit facility, together with the implementation of our agreement with Bondholders, underscore the successful financial restructuring of Getronics.”
About Getronics
With 23,000 employees in over 30 countries and revenues of EUR 3.6 billion in 2002, Getronics is one of the world's leading providers of vendor independent Information and Communication Technology (ICT) solutions and services. Getronics today combines the capabilities of the original Dutch company with those of Wang Global, acquired in 1999, and of the systems and services division of Olivetti. Getronics is ranked second worldwide in network and desktop outsourcing and fifth worldwide in network consulting and integration (Source: IDC July-August 2002).
Getronics designs, integrates and manages ICT infrastructures and business solutions for many of the world's largest global and local companies and organisations, helping them maximise the value of their information technology investments.
Getronics headquarters are in Amsterdam, with regional offices in Boston and Singapore. Getronics’ shares are traded on Euronext Amsterdam (‘GTN’). For further information about Getronics, visit www.getronics.com
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