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TK Elevator announces successful term loan repricing and allocation of incremental facility

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TK Elevator Holdco GmbH (together with its subsidiaries, “TKE”) announced today that its subsidiaries, TK Elevator Midco GmbH (“Midco”) and TK Elevator U.S. Newco, Inc. (“U.S. Newco”), have allocated the previously announced term loan repricing and upsize by €300.0 million (equivalent) incremental term loan facility. The transaction will increase the quantum of Midco's €1,015 senior secured term loan facility by €250 million and reduces the interest rates on that upsized facility by 62.5 bps to E+3.625 bps per annum and will increase the quantum of U.S. Newco’s and Midco’s circa $2,861 million (pre-amortisation) / $2,853 million (post-amortisation) senior secured term loan facility by the US dollar equivalent of €50 million and reduces the interest rates on that upsized facility by 75 bps to L+ 3.50 bps per annum (with a LIBOR floor of 50 bps). The senior secured term facilities’ 101 soft-call protection was reset for six months from the date on which repriced facilities are utilised. A portion of the net proceeds from the incremental facility in an amount equal to €170 million will be used to redeem 10% of TKE’s existing senior notes due 2028 at a redemption price of 103%, plus accrued and unpaid interest to the redemption date and a portion of the net proceeds from the incremental facility in an amount equal to €100 million will be used to prepay utilisations under TKE's existing revolving credit facility, plus accrued and unpaid interest to the prepayment date. The remaining proceeds will be used for general corporate and working capital purposes and any fees, costs and expenses in connection with the transaction.

The repricing will be effected through additional facilities mechanics under TKE’s existing senior secured facilities agreement and is expected to close on or around August 2, 2021, subject to customary conditions precedent.


INVESTOR RELATIONS CONTACT

Christian Schulte
Head of Investor Relations
Tel: +49 211 5400413417
Email: christian.h.schulte@tkelevator.com


ABOUT US

TK Elevator (formerly: thyssenkrupp Elevator)

With customers in over 100 countries served by 50,000 employees, TK Elevator achieved sales of around €8 billion in the fiscal year 2019/2020. Over 1,000 locations around the world provide an extensive network that guarantees closeness to customers. Over the past decades, TK Elevator has established itself as one of the world’s leading elevator companies and became independent since its sale by thyssenkrupp AG in August 2020. The company’s most important business line is the service business represented by over 24,000 service technicians. The product portfolio covers commodity elevators for residential and commercial buildings to cutting-edge, highly customized solutions for state-of-the-art skyscrapers. In addition, it also consists of escalators and moving walks, passenger boarding bridges, stair and platform lifts. Integrated cloud-based service solutions, such as the MAX platform, are gaining in importance. With these digital offerings, there are no limits to urban mobility anymore. TKE – move beyond.

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This document is not an offer of securities for sale in the United States. It may also be unlawful to distribute this document in certain jurisdictions. This document is not for distribution in Canada, Japan or Australia. The information in this document does not constitute an offer of securities for sale in Canada, Japan or Australia.

This announcement may include “forward-looking” statements within the meaning of applicable securities laws. Forward-looking statements are based on current expectations and involve a number of known and unknown risks, uncertainties and other factors that could cause the actual interest savings, results, levels of activity, performance and achievements to be materially different from any future interest savings, results, levels of activity, performance or achievements expressed or implied by such forward-looking statements. You should not place undue reliance on forward-looking statements and TKE does not undertake publicly to update or revise any forward-looking statement that may be made herein, whether as a result of new information, future events or otherwise.

This announcement may constitute a public disclosure of inside information by TKE under Regulation (EU) 596/2014 (16 April 2014).

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