Adcco Group sells 500 million euros worth of 8-year bonds and launches a buyback offer for two existing notes.
In a strategic move to optimise its debt maturity profile and reduce borrowing costs, the world's leading provider of HR solutions, with over 33,000 FTE employees and approximately 700,000 associates connecting with clients daily, announced a significant refinancing activity in Zurich, Switzerland, in November 2016.
The group, registered in Switzerland (ISIN: CH0012138605) and listed on the SIX Swiss Exchange (ADEN), made two key transactions as part of its financial refinancing efforts. The first transaction involved the successful placement of €500 million worth of 8-year notes under its EMTN Programme. This issuance, well-received by investors, demonstrated strong interest with oversubscription in similar prior issues.
Simultaneously, a tender offer was conducted on two previously existing bond issues, aiming to repurchase or refinance outstanding debt. The tender offer, which was not fully detailed in the search results, suggests a structured approach to refinancing existing liabilities through new Eurobond issuances and tender offers.
The issuer of the new notes was our International Financial Services B.V., with BofAML, ING, Natixis, and SG CIB serving as joint bookrunners on the new issue, and SG CIB acting as global coordinator. Natixis and SG CIB also acted as Dealer Managers on the tender offer.
The coupon for the new notes was set at 1.00%, and the maturity date was 2 December 2024. The proceeds of the new notes were used to finance the tender offer. The Tender Offer for the existing notes was being made only through a formal offer document, and it was not being made in any jurisdiction where it would not comply with securities laws.
The materials in this press release are not for release, distribution, or publication in the United States, Canada, Japan, or any jurisdiction where it would constitute a violation of the relevant laws. The New Notes will not be registered under the US Securities Act of 1933, as amended, and will not be registered with any authority in the United States.
Upcoming events for the group include the Q4 2016 results, Annual General Meeting, Q1 2017 results, Q2 2017 results, Q3 2017 results, and Q4 2017 results. The Tender Offer for the existing notes is being made only through a formal offer document.
This strategic refinancing move in Zurich follows a pattern of effective debt management by the group, with earlier Eurobond issues used similarly to refinance previous bonds and support corporate financing needs, often involving roadshows in major financial centers including Zurich, with strong investor demand noted. The group's refinancing activities are part of its general corporate purposes and efforts to manage debt maturities effectively.
In the aftermath of a strategic refinancing move in Zurich, the HR solutions provider has embarked on a series of transition steps. The group, with a significant presence in temporary staffing and permanent placement, intends to invest the proceeds from their successful €500 million notes issuance in talent development, furthering their business objectives.
Outsourcing aspects of their financial operations might also be considered due to the success of previous Eurobond issues, which were utilized to refinance existing debts and support corporate financing needs, often involving roadshows in key financial centers. This demonstrates their commitment to effective debt management and maintaining a favorable debt maturity profile.
Moreover, the group plans to advance its career transition services, ensuring a smooth transition for both clients and associates during periods of staffing changes. This aligns with their ongoing initiatives to optimize operations and reduce borrowing costs.
In light of their future events such as Q4 2016 results, Q1 2017 results, and subsequent quarterly results, investors should remain vigilant for updates regarding the group's financial status, refinancing activities, and broader business strategies.
