Debt structure
Signify’s debt consist of bonds (EUR) and bank borrowings (term loans in EUR and USD).
Signify also has a EUR 500 million committed multi-currency revolving credit facility (RCF), signed in January 2020, with a maturity in January 2027. To date, Signify’s revolving credit facility has remained undrawn.
The term loans and RCF agreement include a financial covenant providing that Signify maintains a net leverage ratio of no greater than 3.5x. The net leverage ratio may temporarily increase to 4.0x within 12 months of the closing of material acquisitions. The covenant does not apply if the company has at least one investment grade rating, which is currently the case (link to credit rating).
Signify’s debt profile per May 31, 2024, consists of EUR 600 million in bonds and EUR 888 million in term loans:
