Banks back Temenos’ refinancing with new $500m facility
Temenos is refinancing its existing banking facilities to the tune of a $500 million new facility.
The Swiss software vendor says it has “taken advantage of current market conditions to lock in low-cost long term financing” through a new $500 million banking facility, consisting of a five-year revolving credit facility which expires in 2021.
The facility was provided by a syndicate of both existing lenders including Barclays, HSBC, RBS, Credit Suisse and Banque Cantonale Vaudoise, and new lenders including Standard Chartered, ING and BNP Paribas.
The facility will be used for general corporate purposes including ongoing working capital requirements and unspecified “future growth opportunities”.
Max Chuard, CFO and COO of Temenos, says the cash boost has “further strengthened our financial flexibility and balance sheet, ensuring we are well positioned to fund our strategic growth objectives in 2016 and the medium term”.
Software spurs sales
Along with FY 2015, the vendor reported good results for the fourth quarter of 2015 – its IFRS (International Financial Reporting Standards) revenue was $168.4 million, up from $133.1 million in Q4 2014. Non-IFRS revenue was $173.4 million for Q4 2015 up from $133.1 million in Q4 2014, representing an absolute increase of 30% and a 36% increase in constant currency.
Temenos CEO David Arnott says 2015 was a “landmark year” for the company and that “geographically our growth was driven largely by developed markets, with emerging markets only contributing 22% of total software licensing revenues”.