Philips successfully prices offering of Notes for EUR 500 million to be used for repayment of existing debt, resulting in a debt-neutral effect

August 30, 2023

Amsterdam, the Netherlands – Royal Philips (NYSE: PHG, AEX: PHIA), a global leader in health technology, today announced the successful pricing of its issue of EUR 500 million fixed rate notes due 2031 (the “Notes”) under its European Medium Term Note (EMTN) program.

The issue of the Notes will have a debt-neutral effect. The net proceeds of the offering will be used for repayment of EUR 500 million utilized and outstanding under the credit facility entered into in Q4 2022 and for general company purposes.

The issue price for the Notes is 99.741% with a Coupon of 4.25%, resulting in a yield of 4.289%. The offering was 2.0 times oversubscribed.

Settlement and issue of the Notes is scheduled for September 8, 2023. Application has been made for the Notes to be listed on the Official List of the Luxembourg Stock Exchange and to be traded on the regulated market of the Luxembourg Stock Exchange.

Philips is committed to maintaining a strong investment grade credit rating. Currently, the company has a BBB+ rating by Standard & Poor's, a Baa1 rating by Moody's and a BBB+ rating by Fitch. 

For further information, please contact:

Ben Zwirs
Philips Global Press Office
Tel.: [phone]
E-mail: [e-mail]

Derya Guzel
Philips Investor Relations
Tel.: [phone]
E-mail: [e-mail]

THIS PRESS RELEASE IS NOT AN OFFER OF SECURITIES FOR SALE IN THE UNITED STATES. THE SECURITIES REFERRED TO HEREIN HAVE NOT BEEN, AND WILL NOT BE, REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE ‘SECURITIES ACT‘), AND MAY NOT BE OFFERED OR SOLD IN THE UNITED STATES ABSENT REGISTRATION OR AN APPLICABLE EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT. THERE IS NO INTENTION TO REGISTER ANY SECURITIES REFERRED TO HEREIN IN THE UNITED STATES OR TO CONDUCT A PUBLIC OFFERING OF SECURITIES IN THE UNITED STATES.

PROHIBITION OF SALES TO EEA RETAIL INVESTORS – The Notes are not intended to be offered, sold or otherwise made available to and should not be offered, sold or otherwise made available to any retail investor in the European Economic Area (the “EEA”). For these purposes, a retail investor means a person who is one (or more) of: (i) a retail client as defined in point (11) of Article 4(1) of Directive 2014/65/EU (as amended, “MiFID II”); or (ii) a customer within the meaning of Directive (EU) 2016/97, where that customer would not qualify as a professional client as defined in point (10) of Article 4(1) of MiFID II. Consequently no key information document required by Regulation (EU) No 1286/2014 (as amended, the “PRIIPs Regulation”) for offering or selling the Notes or otherwise making them available to retail investors in the EEA has been prepared and therefore offering or selling the Notes or otherwise making them available to any retail investor in the EEA may be unlawful under the PRIIPs Regulation.