Senvion signs EUR 100m loan agreement with its lenders and main bond holders

PRESS RELEASE

Hamburg: Senvion, its lenders and main bond holders have signed a binding loan agreement, setting forth terms for a EUR 100m debtor-in-possession (“DIP”) facility.

The facility enables Senvion to continue its business operations following last week’s self-administration filing. The DIP facility has received Board approvals and allows substantial drawings already this week, thus enabling the company to stabilize its business operations and provide funds to its non-insolvent subsidiaries.

Yves Rannou, CEO of Senvion, said: “We would like to thank both our lenders and main bond holders for their support in agreeing to provide us with a DIP facility that will enable us to continue our operations. This is particularly helpful since we managed to significantly ramp up our installations in Q1.

So, this is encouraging news for all of us and of course for our transformation process. We have received a multitude of supportive reactions from our customers and suppliers and continue our close dialogue with them. We also deeply appreciate the support of our teams on the ground and their continuous commitment to support Senvion on this journey back to health.”

The super-senior secured DIP facility with a tenure of 12 months will provide Senvion the financial means to proceed with the comprehensive transformation process initiated at the beginning of this year. Senvion’s management led by CEO Yves Rannou, has implemented measures to strengthen the company, refocus operations, concentrate on the most attractive markets, streamline the product portfolio, improve installation execution and realize efficiency gains in the service business.

BOOST IN INSTALLATIONS
These transformation initiatives are showing first positive results. Senvion installed 366 MW worldwide in Q1 2019, more than twice as much as in Q1 2018. The majority of new capacity was installed for customers in growth markets in South America and Australia, where Senvion has significantly improved execution.

With around 120 MW in Chile and Argentina and nearly 110 MW in Australia, these growth markets account for over 60% of the installations in the first quarter. Senvion also built and installed its first turbine in India, another key growth market.

Senvion’s important service business also continues to develop positively. At the end of Q1 2019, the total installed capacity under service amounted to 14.1 GW, meaning that Senvion has again grown its strong and profitable service business. Senvion maintains close to 80% of its installed capacity, with an order book of around EUR 2.8bn. The average Senvion service contract tenor stands at more than ten years, which enables accurate long-term visibility and forecasts of revenue and cash flow.

About Senvion:
Senvion is a leading global manufacturer of onshore and offshore wind turbines. The company develops, produces and markets wind turbines for almost any location – with rated outputs of 2 MW to 6.33 MW and rotor diameters of 82 metres to 152 metres. Furthermore, the company offers its customers project specific solutions in the areas of turnkey, service and maintenance, transport and installation, as well as foundation planning and construction.

The Senvion systems are mainly designed in the major TechCenters in Osterrönfeld and Bangalore and manufactured at its German and Portuguese plants in Bremerhaven, Vagos and Oliveira de Frades as well as in Żory-Warszowice, Poland and Baramati, India. With approximately 4,000 employees worldwide, the company makes use of the experience gained from the manufacture and installation of more than 8,200 wind turbines around the world.

The company’s operational subsidiary Senvion GmbH is based in Hamburg and represented by distribution partners, subsidiaries and participations in European markets such as France, Belgium, the Netherlands, the UK, Italy, Romania, Portugal, Spain, Sweden, and Poland as well as on a global level in the USA, China, Australia, Japan, India, Chile and Canada. Senvion S.A. is listed on the Prime Standard of the Frankfurt Stock Exchange.