FORVIA FURTHER IMPROVES ITS DEBT PROFILE BY USING PROCEEDS FROM ADDITIONAL ISSUANCE OF SENIOR NOTES DUE 2031 TO PARTIALLY REFINANCE EXISTING 2026 SUSTAINABILITY-LINKED NOTES

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NANTERRE (FRANCE)
MAY 7, 2024

FORVIA FURTHER IMPROVES ITS DEBT PROFILE BY USING PROCEEDS FROM ADDITIONAL ISSUANCE OF SENIOR NOTES DUE 2031 TO PARTIALLY REFINANCE EXISTING 2026 SUSTAINABILITY-LINKED NOTES

• Issued an additional €200 million of 5.500% Senior Notes due 2031 at 101.75% of par, corresponding to a yield of 5.20%
• Proceeds from the issuance, with additional cash, used to repurchase €250 million of existing 2026 7.250% Sustainability-Linked Notes by way of a tender offer, thus reducing the Group’s gross debt

FORVIA has successfully closed its previously announced offering of an additional €200 million in aggregate principal amount of 5.500% Senior Notes due 2031 (the “New Notes”), which will be consolidated with and form a single series with the existing €500 million 5.500% Senior Notes due 2031 issued on 11 March 2024 after the expiry of a 40-day distribution compliance period.

The New Notes obtained credit rating in line with the long-term credit rating of FORVIA (i.e., “BB+” by Fitch Ratings, “Ba2” by Moody’s and “BB” by Standard & Poor’s) and are listed on the Global Exchange Market of Euronext Dublin.

The associated tender offer (the “Tender Offer”) for the repurchase of FORVIA’s existing 7.250% Sustainability-linked Notes due 2026 (the “Existing Notes”) also settled today. With the success of the Tender Offer, FORVIA decided to increase the maximum amount of the Existing Notes accepted for tender in the Tender Offer to, and has accepted the tenders of, €250 million in aggregate principal amount of the Existing Notes, which Existing Notes have now been cancelled. This tender offer further reduces the outstanding amount of the Existing Notes, which now stands at €330.2 million vs the initial €950 million issuance. 

 These transactions allow the Group to proactively manage its liabilities and extend its average debt maturity.

Olivier Durand, Chief Financial Officer of FORVIA, declared: “After a first successful operation of bond issue and repurchase of existing maturities in March, this new transaction not only demonstrates FORVIA’s ability to take advantage of improving market conditions to actively manage its maturity profile but also, by deciding to increase the tender offer, its intention to reduce its gross debt. It’s complementary to the Group’s commitment to accelerate the deleveraging and fully rebalance its capital structure.”