Philips successfully prices offering of Notes for EUR 700 million to be used for repayment of existing debt
May 23 2024 - 4:30PM
Philips successfully prices offering of Notes for EUR 700 million
to be used for repayment of existing debt
May 23, 2024
Amsterdam, the Netherlands – Royal Philips
(NYSE: PHG, AEX: PHIA), a global leader in health technology, today
announced the successful pricing of its offering of EUR 700 million
fixed rate notes due 2032 (the “Notes”) under its European Medium
Term Note (EMTN) program.
The issue of the Notes will have a debt-neutral effect, as the
net proceeds of the transaction will be used for repayment of debt
in 2024 and 2025.
The issue price for the Notes is 98.257% with a Coupon of 3.75%,
resulting in a yield of 4.009%. The offering was more than 2 times
oversubscribed.
Settlement and issue of the Notes is scheduled for May 31, 2024.
Application has been made for the Notes to be listed on the
Official List of the Luxembourg Stock Exchange and to be traded on
the regulated market of the Luxembourg Stock Exchange.
Philips is committed to maintaining a strong investment grade
credit rating. Currently, the company has a BBB+ rating by Standard
& Poor's, a Baa1 rating by Moody's and a BBB+ rating by
Fitch.
THIS PRESS RELEASE IS NOT AN OFFER OF SECURITIES FOR
SALE IN THE UNITED STATES. THE SECURITIES REFERRED TO HEREIN HAVE
NOT BEEN, AND WILL NOT BE, REGISTERED UNDER THE SECURITIES ACT OF
1933, AS AMENDED (THE ‘SECURITIES ACT‘), AND MAY NOT BE OFFERED OR
SOLD IN THE UNITED STATES ABSENT REGISTRATION OR AN APPLICABLE
EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT. THERE IS NO
INTENTION TO REGISTER ANY SECURITIES REFERRED TO HEREIN IN THE
UNITED STATES OR TO CONDUCT A PUBLIC OFFERING OF SECURITIES IN THE
UNITED STATES.
PROHIBITION OF SALES TO EEA RETAIL INVESTORS –
The Notes are not intended to be offered, sold or otherwise made
available to and should not be offered, sold or otherwise made
available to any retail investor in the European Economic Area (the
“EEA”). For these purposes, a retail investor
means a person who is one (or more) of: (i) a retail client as
defined in point (11) of Article 4(1) of Directive 2014/65/EU (as
amended, “MiFID II”); or (ii) a customer within the meaning of
Directive (EU) 2016/97, where that customer would not qualify as a
professional client as defined in point (10) of Article 4(1) of
MiFID II. Consequently no key information document required by
Regulation (EU) No 1286/2014 (as amended, the “PRIIPs Regulation”)
for offering or selling the Notes or otherwise making them
available to retail investors in the EEA has been prepared and
therefore offering or selling the Notes or otherwise making them
available to any retail investor in the EEA may be unlawful under
the PRIIPs Regulation.
PROHIBITION OF SALES TO UK RETAIL INVESTORS –
The Notes are not intended to be offered, sold or otherwise made
available to and should not be offered, sold or otherwise
made available to any retail investor in the United Kingdom (the
“UK”). For these purposes, a retail investor means
a person who is one (or more) of: (i) a retail client, as defined
in point (8) of Article 2 of Regulation (EU) No 2017/565 as it
forms part of domestic law by virtue of the European Union
(Withdrawal) Act 2018 (the “EUWA”); or (ii) a
customer within the meaning of the provisions of the FSMA and any
rules or regulations made under the Financial Services and Markets
Act 2000 (as amended, the “FSMA”) to implement
Directive (EU) 2016/97, where that customer would not qualify as a
professional client, as defined in point (8) of Article 2(1) of
Regulation (EU) No 600/2014 as it forms part of domestic law by
virtue of the EUWA. Consequently no key information document
required by Regulation (EU) No 1286/2014 as it forms part of
domestic law by virtue of the EUWA (the “UK PRIIPs
Regulation”) for offering or selling the Notes or
otherwise making them available to retail investors in the UK has
been prepared and therefore offering or selling the Notes or
otherwise making them available to any retail investor in the UK
may be unlawful under the UK PRIIPs Regulation.
In the UK, this press release is being distributed to, and is
directed at, only (a) persons who have professional experience in
matters relating to investments who fall within the definition of
“investment professionals” in Article 19(5) of the Financial
Services and Markets Act 2000 (Financial Promotion) Order 2005, as
amended (the “Order”); or (b) high net worth
companies, and other persons to whom it may otherwise lawfully be
communicated, falling within Article 49(2)(a) to (d) of the Order
(all such persons together being referred to as “relevant
persons”). The Notes are available only to, and any
invitation, offer or agreement to subscribe, purchase or otherwise
acquire such Notes will be available only to or will be engaged in
only with, relevant persons. Any person who is not a relevant
person should not act or rely on this press release or any of its
contents.
Relevant stabilisation regulations including FCA/ICMA
apply.
MiFID II and UK MiFIR
professionals/ECPs-only
Manufacturer target market (MIFID II and UK MiFIR product
governance) is eligible counterparties and professional clients
only (all distribution channels).
For further information, please
contact:
Ben ZwirsPhilips External RelationsTel.: +31 6 1521 3446E-mail:
ben.zwirs@philips.com
Dorin DanuPhilips Investor RelationsTel.: +31 20 59 77055E-mail:
dorin.danu@philips.com
About Royal PhilipsRoyal Philips (NYSE: PHG,
AEX: PHIA) is a leading health technology company focused on
improving people's health and well-being through meaningful
innovation. Philips’ patient- and people-centric innovation
leverages advanced technology and deep clinical and consumer
insights to deliver personal health solutions for consumers and
professional health solutions for healthcare providers and their
patients in the hospital and the home. Headquartered in the
Netherlands, the company is a leader in diagnostic imaging,
ultrasound, image-guided therapy, monitoring, and enterprise
informatics, as well as in personal health. Philips generated 2023
sales of EUR 18.2 billion and employs approximately 69,100
employees with sales and services in more than 100 countries. News
about Philips can be found at www.philips.com/newscenter.
Forward-looking statementsThis release contains
certain forward-looking statements with respect to the financial
condition, results of operations and business of Philips and
certain of the plans and objectives of Philips with respect to
these items. Examples of forward-looking statements include
statements made about the strategy, estimates of sales growth,
future EBITA, future developments in Philips’ organic business and
the completion of acquisitions and divestments. By their nature,
these statements involve risk and uncertainty because they relate
to future events and circumstances and there are many factors that
could cause actual results and developments to differ materially
from those expressed or implied by these statements.
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