On Holding AG said in a regulatory filing that it had entered into a CHF 700 million multi-currency credit facility agreement led by UBS Switzerland AG.
On said it does not currently expect to draw cash from the facility agreement in the near term. On said in the filing, “The company has entered into the facility agreement as part of its prudent financial planning strategy to create future financial flexibility to better align with the size and maturity of the company. The proceeds of any borrowings under the facility agreement may be used towards the financing of working capital requirements and for general corporate purposes of the Group, including the roll-in of certain existing bank guarantees and the issuance of new bank guarantees.”
The facility agreement provides the company with an option to increase the total availability of borrowings under the facility in an aggregate amount of up to CHF 200 million, subject to the satisfaction of certain customary conditions. The obligations under the facility are secured by pledges of inventory, as well as by assignments of specified receivables.
The facility agreement has an initial term of three years and may be extended twice for a period of one year each.
