Case Study

SAPs successful refinancing of EUR1.5 billion credit facility

The Clients Requirement SAP wanted to move quickly to take advantage of improved pricing in the loan market, refinancing an existing credit facility dating from 2009 when market conditions were less favourable The Solution After SAP had thoroughly screened the market, RBS responded within 24 hours to the clients request for initial detailed proposals about refinancing and, after being appointed as bookrunner and lead arranger, moved from mandate to successful execution within five weeks

Highlights
S  AP completed a EUR1.5 billion refinancing of an existing revolving credit facility, extending the maturity from three to five years T  he transaction was the most competitively priced in Germany in 2010, and was among the most tightly priced in Europe during the year R  BS delivered on the refinancing for the client from start to finish, advising on developments in the loan market, putting forward detailed proposals and executing to ensure a successful outcome
SAP is the worlds leading provider of enterprise application software. Like other major companies, the company maintains access to credit facilities for liquidity purposes and had an existing facility which was set up in 2009. RBS had led this transaction, which won widespread praise for being one of the first deals to re-open the corporate loans market after the financial crisis, although the facility was restricted to a three year maturity as participating banks were wary of the still difficult market environment. As conditions improved in the loan market, RBS and SAP were quick to identify the potential to refinance this facility. However, at the time SAP was fully engaged on completing its USD5.8 billion acquisition of US company Sybase in the second half of 2010, so it was October before the company was ready to look at detailed proposals. When asked to outline its plans for refinancing, RBS immediately produced a comprehensive proposal, in line with a challenging deadline for submission, which clearly added value. The plans covered all the relevant areas, including advice on whether to amend or extend the credit facility, the timing of the transaction and the facility size. RBS was mandated as bookrunner and lead arranger in early November. Christoph Weaver, Managing Director, RBS Loans Markets Origination, said This is when our machinery really starts whirring, with Loans Markets Origination, Syndicate and Sales all knowing their precise roles. We had prepared a kick-off booklet for the company within 24 hours of being mandated, mapping out the timetable for the execution process over the next five weeks, and this proved remarkably accurate. After extensive market sounding performed by the treasury team of the customer, the resulting transaction in December was remarkably smooth. Syndication was extremely successful and more than EUR2.8 billion was raised from a total of 30 banks. The transaction was the most competitively priced in Germany in 2010, and was among the most tightly priced in Europe during the year. As Joerg Wiemer, Senior Vice President and Head of Global Treasury of SAP said, This transaction rounded off a busy year for SAP in terms of engagement with capital markets. Given the substantial amount of acquisition financing that was required in 2010 for the purchase of Sybase, it is a testament to the very strong creditworthiness of SAP and the abilities of RBS, along with the other bookrunners, that the refinancing of the revolving credit facility was delivered so smoothly and on such markedly improved terms. For more information about how we can support your business needs, please contact your relationship manager.

EUR 1,500,000,000 Revolving Credit Facility Bookrunner and Mandated Lead Arranger December 2010

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1647-0411 May 2011