SAN JOSE, Calif.–(BUSINESS WIRE)–Lumileds Holding B.V. (“Lumileds” or the “Firm”), a worldwide chief in progressive lighting options, introduced at present that it has entered right into a restructuring help settlement (the “RSA” or the “Settlement”) with its lenders holding a major majority of the loans excellent beneath its prepetition first lien debt facility on the phrases of a complete monetary restructuring that may considerably de-leverage and strengthen its stability sheet by over $1.3 billion, speed up Lumileds’ progress, and allow additional funding in innovation to pursue further strategic alternatives via the injection of as much as $275 million of liquidity.
To effectively implement the de-leveraging, a narrowly centered prepackaged Chapter 11 plan (the “Plan”) involving solely Lumileds’ U.S. and Dutch entities has commenced within the U.S. Chapter Court docket for the Southern District of New York (the “Court docket”). Lumileds’ European, Asian, and different overseas subsidiaries and associates are usually not included within the submitting and are unaffected by the Chapter 11 course of. The Firm has obtained the required help from its lenders to substantiate the Plan previous to commencing its proceedings and expects to fulfill the necessities to substantiate the Plan and emerge from Chapter 11 inside roughly sixty days.
“Over the previous few years, now we have been exhausting at work reworking our value construction and innovation pipeline, which has allowed us to capitalize extra successfully on future market traits as a pacesetter within the lighting business,” stated Matt Roney, CEO of Lumileds. “We have now proactively taken steps to de-leverage our stability sheet given the continuing challenges introduced by international provide constraints, COVID-related points, and the disaster in Ukraine. This recapitalization will allow us to additional speed up our efforts as a market-leading innovator inside the specialty lighting business. We imagine that the simplest and environment friendly solution to accomplish that is via a prepackaged Chapter 11 course of that can be accompanied by a major enhance in our liquidity place. We recognize the help of our lenders, who acknowledge the long-term worth and enhanced potential Lumileds will create with a strengthened stability sheet.”
BUSINESS AS USUAL
Not one of the Firm’s enterprise operations exterior of the USA and the Netherlands are a part of the Chapter 11 continuing. The Firm has filed “first day” motions to acquire the requisite court docket authority for the Firm to proceed working its companies and amenities within the abnormal course with out disruption to its clients, distributors, suppliers, or workers. As a part of these first day motions, the Firm has sought court docket approval to proceed to pay all legitimate quantities owed to distributors and suppliers as they arrive due. As well as, the Firm expects that workers will proceed to obtain their ordinary wages and advantages with out interruption.
“Our primary precedence is to ship by no means earlier than doable options for lighting, security, and well-being,” added Mr. Roney. “This complete liquidity and de-leveraging answer will allow us to be an much more engaging and stronger associate as we proceed to drive innovation in LED know-how and supply new merchandise and options to our clients. I want to thank all of our valued workers, clients, distributors, suppliers, and sponsors for his or her ongoing help.”
TERMS OF THE RESTRUCTURING SUPPORT AGREEMENT
Below the phrases of the RSA, the prevailing secured lenders are anticipated to decide to help, and vote in favor of, a transaction that, when executed, will scale back the Firm’s funded debt by roughly $1.3 billion, from roughly $1.7 billion to $400 million comprised of takeback debt and post-petition loans, which can be mixed right into a 5-year exit facility.
The RSA additionally contemplates a dedication from sure of its lenders of as much as $275 million in debtor-in-possession (“DIP”) financing, out there as a part of the Chapter 11 course of. Topic to the Court docket’s approval, the DIP financing, along with the Firm’s out there money reserves and money supplied by operations, is predicted to supply adequate liquidity for Lumileds to proceed assembly its ongoing obligations, together with all obligations to clients, distributors, and suppliers, in addition to worker wages, salaries, and advantages applications.
Extra details about Lumileds’ restructuring, together with entry to Court docket paperwork, can be out there at https://dm.epiq11.com/Lumileds or by contacting Epiq Company Restructuring, LLC, the Firm’s noticing and claims agent at +1 800-497-9116 (for toll-free home calls) and +1 503-520-4495 (for tolled worldwide calls) or emailing Lumiledsinfo@epiqglobal.com.
Evercore is performing as funding banker for the Firm; Paul, Weiss, Rifkind, Wharton & Garrison, LLP, and Latham & Watkins LLP are performing as company and restructuring counsel to Lumileds, and AlixPartners, LLP, as monetary advisor. PJT Companions is performing as monetary advisor for an advert hoc group of Lumileds’ lenders, and Gibson, Dunn & Crutcher LLP is performing because the group’s authorized counsel.
About Lumileds
Lumileds is a worldwide chief in OEM and aftermarket automotive lighting and equipment, digital camera flash for cellular units, MicroLED, and lightweight sources for normal illumination, horticulture, and human-centric lighting. Our roughly 7,000 workers function in over 30 nations and associate with our clients to ship by no means earlier than doable options for lighting, security, and well-being. To study extra about our firm and answer portfolios, please go to https://lumileds.com.
Sure statements on this press launch are forward-looking statements inside the that means of and made pursuant to the secure harbor provisions of Part 27A of the Securities Act of 1933, as amended, and Part 21E of the Securities Trade Act of 1934, as amended. As well as, our administration could, occasionally, make forward-looking oral statements. All statements, apart from statements of historic details, are forward-looking statements. Ahead-looking statements could also be recognized by the phrases “imagine,” “anticipate,” “anticipate,” “challenge,” “plan,” “estimate,” “could,” “will,” “may,” “ought to,” “search” or “intend” and comparable expressions. Ahead-looking statements replicate our present expectations and assumptions concerning our enterprise, the economic system, and different future occasions and circumstances and are primarily based on at present out there monetary, financial, and aggressive information and our present enterprise plans. Precise outcomes may range materially relying on dangers and uncertainties which will have an effect on our operations, markets, companies, costs, and different elements. Whereas we imagine our assumptions are affordable, we warning you in opposition to counting on any forward-looking statements as it is vitally troublesome to foretell the affect of identified elements, and it’s unattainable for us to anticipate all elements that would have an effect on our precise outcomes. Necessary elements that would trigger precise outcomes to vary materially from these within the forward-looking statements embody, however are usually not restricted to, our skill to acquire the approval of the Chapter Court docket with respect to motions filed within the Chapter 11 instances and the outcomes of Chapter Court docket rulings and the Chapter 11 instances typically, the effectiveness of the general restructuring actions pursuant to the Chapter 11 filings and any further methods that we could make use of to deal with our liquidity and capital assets, the actions and choices of collectors, regulators and different third events which have an curiosity within the Chapter 11 instances, restrictions on us because of the phrases of any debtor-in-possession credit score facility that we could enter into in reference to the Chapter 11 instances and restrictions imposed by the Chapter Court docket, the timing for resolving and any affect of the community safety incident, a weakening of world financial and monetary circumstances, interruptions within the provide of or elevated value of uncooked supplies, the lack of, or difficulties with the additional realization of, value financial savings in reference to our strategic initiatives, the affect of our substantial indebtedness, our failure to adjust to monetary covenants beneath our credit score amenities or different debt, pricing actions by our rivals that would have an effect on our working margins, modifications in governmental laws and associated compliance and litigation prices, and the opposite elements. All forward-looking statements are expressly certified of their entirety by this cautionary discover. The forward-looking statements made by us converse solely as of the date on which they’re made. Components or occasions that would trigger our precise outcomes to vary could emerge occasionally. We undertake no obligation to publicly replace or revise any forward-looking assertion on account of new data, future occasions or in any other case, besides as in any other case required by regulation.
SAN JOSE, Calif.–(BUSINESS WIRE)–Lumileds Holding B.V. (“Lumileds” or the “Firm”), a worldwide chief in progressive lighting options, introduced at present that it has entered right into a restructuring help settlement (the “RSA” or the “Settlement”) with its lenders holding a major majority of the loans excellent beneath its prepetition first lien debt facility on the phrases of a complete monetary restructuring that may considerably de-leverage and strengthen its stability sheet by over $1.3 billion, speed up Lumileds’ progress, and allow additional funding in innovation to pursue further strategic alternatives via the injection of as much as $275 million of liquidity.
To effectively implement the de-leveraging, a narrowly centered prepackaged Chapter 11 plan (the “Plan”) involving solely Lumileds’ U.S. and Dutch entities has commenced within the U.S. Chapter Court docket for the Southern District of New York (the “Court docket”). Lumileds’ European, Asian, and different overseas subsidiaries and associates are usually not included within the submitting and are unaffected by the Chapter 11 course of. The Firm has obtained the required help from its lenders to substantiate the Plan previous to commencing its proceedings and expects to fulfill the necessities to substantiate the Plan and emerge from Chapter 11 inside roughly sixty days.
“Over the previous few years, now we have been exhausting at work reworking our value construction and innovation pipeline, which has allowed us to capitalize extra successfully on future market traits as a pacesetter within the lighting business,” stated Matt Roney, CEO of Lumileds. “We have now proactively taken steps to de-leverage our stability sheet given the continuing challenges introduced by international provide constraints, COVID-related points, and the disaster in Ukraine. This recapitalization will allow us to additional speed up our efforts as a market-leading innovator inside the specialty lighting business. We imagine that the simplest and environment friendly solution to accomplish that is via a prepackaged Chapter 11 course of that can be accompanied by a major enhance in our liquidity place. We recognize the help of our lenders, who acknowledge the long-term worth and enhanced potential Lumileds will create with a strengthened stability sheet.”
BUSINESS AS USUAL
Not one of the Firm’s enterprise operations exterior of the USA and the Netherlands are a part of the Chapter 11 continuing. The Firm has filed “first day” motions to acquire the requisite court docket authority for the Firm to proceed working its companies and amenities within the abnormal course with out disruption to its clients, distributors, suppliers, or workers. As a part of these first day motions, the Firm has sought court docket approval to proceed to pay all legitimate quantities owed to distributors and suppliers as they arrive due. As well as, the Firm expects that workers will proceed to obtain their ordinary wages and advantages with out interruption.
“Our primary precedence is to ship by no means earlier than doable options for lighting, security, and well-being,” added Mr. Roney. “This complete liquidity and de-leveraging answer will allow us to be an much more engaging and stronger associate as we proceed to drive innovation in LED know-how and supply new merchandise and options to our clients. I want to thank all of our valued workers, clients, distributors, suppliers, and sponsors for his or her ongoing help.”
TERMS OF THE RESTRUCTURING SUPPORT AGREEMENT
Below the phrases of the RSA, the prevailing secured lenders are anticipated to decide to help, and vote in favor of, a transaction that, when executed, will scale back the Firm’s funded debt by roughly $1.3 billion, from roughly $1.7 billion to $400 million comprised of takeback debt and post-petition loans, which can be mixed right into a 5-year exit facility.
The RSA additionally contemplates a dedication from sure of its lenders of as much as $275 million in debtor-in-possession (“DIP”) financing, out there as a part of the Chapter 11 course of. Topic to the Court docket’s approval, the DIP financing, along with the Firm’s out there money reserves and money supplied by operations, is predicted to supply adequate liquidity for Lumileds to proceed assembly its ongoing obligations, together with all obligations to clients, distributors, and suppliers, in addition to worker wages, salaries, and advantages applications.
Extra details about Lumileds’ restructuring, together with entry to Court docket paperwork, can be out there at https://dm.epiq11.com/Lumileds or by contacting Epiq Company Restructuring, LLC, the Firm’s noticing and claims agent at +1 800-497-9116 (for toll-free home calls) and +1 503-520-4495 (for tolled worldwide calls) or emailing Lumiledsinfo@epiqglobal.com.
Evercore is performing as funding banker for the Firm; Paul, Weiss, Rifkind, Wharton & Garrison, LLP, and Latham & Watkins LLP are performing as company and restructuring counsel to Lumileds, and AlixPartners, LLP, as monetary advisor. PJT Companions is performing as monetary advisor for an advert hoc group of Lumileds’ lenders, and Gibson, Dunn & Crutcher LLP is performing because the group’s authorized counsel.
About Lumileds
Lumileds is a worldwide chief in OEM and aftermarket automotive lighting and equipment, digital camera flash for cellular units, MicroLED, and lightweight sources for normal illumination, horticulture, and human-centric lighting. Our roughly 7,000 workers function in over 30 nations and associate with our clients to ship by no means earlier than doable options for lighting, security, and well-being. To study extra about our firm and answer portfolios, please go to https://lumileds.com.
Sure statements on this press launch are forward-looking statements inside the that means of and made pursuant to the secure harbor provisions of Part 27A of the Securities Act of 1933, as amended, and Part 21E of the Securities Trade Act of 1934, as amended. As well as, our administration could, occasionally, make forward-looking oral statements. All statements, apart from statements of historic details, are forward-looking statements. Ahead-looking statements could also be recognized by the phrases “imagine,” “anticipate,” “anticipate,” “challenge,” “plan,” “estimate,” “could,” “will,” “may,” “ought to,” “search” or “intend” and comparable expressions. Ahead-looking statements replicate our present expectations and assumptions concerning our enterprise, the economic system, and different future occasions and circumstances and are primarily based on at present out there monetary, financial, and aggressive information and our present enterprise plans. Precise outcomes may range materially relying on dangers and uncertainties which will have an effect on our operations, markets, companies, costs, and different elements. Whereas we imagine our assumptions are affordable, we warning you in opposition to counting on any forward-looking statements as it is vitally troublesome to foretell the affect of identified elements, and it’s unattainable for us to anticipate all elements that would have an effect on our precise outcomes. Necessary elements that would trigger precise outcomes to vary materially from these within the forward-looking statements embody, however are usually not restricted to, our skill to acquire the approval of the Chapter Court docket with respect to motions filed within the Chapter 11 instances and the outcomes of Chapter Court docket rulings and the Chapter 11 instances typically, the effectiveness of the general restructuring actions pursuant to the Chapter 11 filings and any further methods that we could make use of to deal with our liquidity and capital assets, the actions and choices of collectors, regulators and different third events which have an curiosity within the Chapter 11 instances, restrictions on us because of the phrases of any debtor-in-possession credit score facility that we could enter into in reference to the Chapter 11 instances and restrictions imposed by the Chapter Court docket, the timing for resolving and any affect of the community safety incident, a weakening of world financial and monetary circumstances, interruptions within the provide of or elevated value of uncooked supplies, the lack of, or difficulties with the additional realization of, value financial savings in reference to our strategic initiatives, the affect of our substantial indebtedness, our failure to adjust to monetary covenants beneath our credit score amenities or different debt, pricing actions by our rivals that would have an effect on our working margins, modifications in governmental laws and associated compliance and litigation prices, and the opposite elements. All forward-looking statements are expressly certified of their entirety by this cautionary discover. The forward-looking statements made by us converse solely as of the date on which they’re made. Components or occasions that would trigger our precise outcomes to vary could emerge occasionally. We undertake no obligation to publicly replace or revise any forward-looking assertion on account of new data, future occasions or in any other case, besides as in any other case required by regulation.
