TeamViewer optimises and expands its loan financing structure
Goppingen, 26 August 2020: TeamViewer, a global leader in secure remote connectivity, has successfully concluded an amendment of its revolving credit and term loan facilities due September 2024. The new terms and conditions reflect the significant deleveraging and improved credit profile caused by the company's very strong business development since its IPO in September 2019.
While the sizes of the EUR and GBP term loans remain the same with EUR 125 million and GBP 66.6 million, the USD term loan has been reduced from USD 450 million to USD 340 million. The increased revolving credit facility (RCF) of EUR 150 million, previously EUR 35 million is drawn initially in an amount of USD 75 million to partially fund the USD term loan repayment. The interest margin has been reduced by 25 basis points across all term loans and by 50 basis points in case of the RCF. In addition to the margin reduction, TeamViewer will benefit from resetting the USD Libor floor from 1% to 0%. Overall, the cash interest saving for the remaining financial year is estimated to be around EUR 1.5 million, which will largely compensate the one-off transaction costs of around EUR 1.7 million. From 2021 the expected annual saving will be in the EUR 5 million area. Furthermore, the amended credit facilities are now unsecured.
Carsten Keller, Head of Capital Markets of TeamViewer, said: "The successful transaction gives us additional flexibility to execute on our growth initiatives, enhances TeamViewer's future cash generation and demonstrates the trust of our lenders in our strategy."
Commerzbank AG acted as coordinator and documentation agent and Freshfield Bruckhaus Deringer advised TeamViewer from a legal perspective.
TeamViewer is a leading global technology company that provides a connectivity platform to remotely access, control, manage, monitor, and repair devices of any kind - from laptops and mobile phones to industrial machines and robots. Although TeamViewer is free of charge for private use, it has more than 500,000 subscribers and enables companies of all sizes and from all industries to digitalize their business-critical processes through seamless connectivity. Against the backdrop of global megatrends like device proliferation, automation and new work, TeamViewer proactively shapes digital transformation and continuously innovates in the fields of Augmented Reality, Internet of Things or Artificial Intelligence.
Since the company's foundation in 2005, TeamViewer's software has been installed on more than 2.2 billion devices around the world. The company is headquartered in Goppingen, Germany, and employs more than 1,000 people globally. In 2019, TeamViewer achieved billings of around EUR 325 million. TeamViewer AG (TMV) is listed at Frankfurt Stock Exchange and belongs to the MDAX. Further information can be found at www.teamviewer.com.
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Goppingen, 26 August 2020
|Commerzbank Corporate Conference 2020 (virtual) ||03 September 2020 |
|Berenberg & Goldman Sachs German Corporate Conference 2020 (virtual) ||21 September 2020 |
|Q3 2020 Quarterly Statement ||10 November 2020 |
Certain statements in this communication may constitute forward looking statements. These statements are based on assumptions that are believed to be reasonable at the time they are made, and are subject to significant risks and uncertainties, including, but not limited to, those risks and uncertainties described in TeamViewer's disclosures. You should not rely on these forward-looking statements as predictions of future events and we undertake no obligation to update or revise these statements. Our actual results may differ materially and adversely from any forward-looking statements discussed in these statements due to several factors, including without limitation, risks from macroeconomic developments, external fraud, lack of innovation capabilities, inadequate data security and changes in competition levels. All stated figures are unaudited.
Alternative performance measures (APMs)
This document contains certain alternative performance measures (collectively, "APMs") including billings and Adjusted EBITDA that are not required by, or presented in accordance with, IFRS, German GAAP or any other generally accepted accounting principles. TeamViewer presents APMs because they are used by management in monitoring, evaluating and managing its business and management believes these measures provide an enhanced understanding of TeamViewer's underlying results and related trends. The definitions of the APMs may not be comparable to other similarly titled measures of other companies and have limitations as analytical tools and should, therefore, not be considered in isolation or as a substitute for analysis of TeamViewer's operating results as reported under IFRS or German GAAP. APMs such as billings and Adjusted EBITDA are not measurements of TeamViewer's performance or liquidity under IFRS or German GAAP and should not be considered as alternatives to results for the period or any other performance measures derived in accordance with IFRS, German GAAP or any other generally accepted accounting principles or as alternatives to cash flow from operating, investing or financing activities.
TeamViewer has defined each of the following APMs as follows:
"Billings" represent the (net) value of goods and services invoiced to customers in a given period whose realization is probable - it is defined as revenue adjusted for change in deferred revenue P&L-effective; "Adjusted EBITDA" means EBITDA, adjusted for P&L-effective changes in deferred revenue as well as for certain special items relating to share based compensations and other material items that are not reflective of the operating performance of the business;
"Adjusted EBITDA margin" means Adjusted EBITDA as a percentage of billings.
Operational metrics and other financial measures for information purposes
This document also includes further certain operational metrics, such as Net Retention Rate, and additional financial measures that are not required by, or presented in accordance with IFRS, German GAAP or any other generally accepted accounting principles (collectively, "other financial measures"). TeamViewer presents these operational metrics and other financial measures for information purposes and because they are used by the management for monitoring, evaluating and managing its business. The definitions of these operational metrics and other financial metrics may not be comparable to other similarly titled measures of other companies and have limitations as analytical tools and should, therefore, not be considered in isolation or as a substitute for analysis of TeamViewer's operating results, performance or liquidity as reported under IFRS or German GAAP.
TeamViewer has defined these operational metrics and other financial measures for information purposes as follows:
"Net retention rate" means annual recurring billings in the period considered less gross value churn plus billings from upselling and cross-selling, including foreign exchange effects and expiring discounts, as a percentage of annual recurring billings in the previous the period considered;
"Levered free cash flow" (FCFE) means net cash from operating activities less capital expenditure for property, plant and equipment and intangible assets (excl. M&A), payments for the capital element of lease liabilities and interest paid for borrowings and lease liabilities; and
"Net leverage" means the ratio of net financial debt (sum of interest-bearing loans and borrowings, current and non-current, less cash and cash equivalents) to Adjusted EBITDA.
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