Korian Successfully Issues New Long Term Schuldschein Debt for an Amount of c. €380m

• Korian has issued c. €380 million of long term Schuldschein debt
  • Lowest interest rate cost from Korian in this market with coupons between 1.3% and 1.7%
  • Maturities between 5 and 8 years
  • Part of a liability management strategy allowing the reimbursement of shorter term more expensive debt
• High demand from investors for Korian credit leading to a doubling of the deal size compared to initial demand
• Average debt maturity now extended to c. 6 years with fixed cost for 100% of the net debt for the next 12 months

PARIS--(BUSINESS WIRE)--Regulatory News:

Korian (Paris:KORI), the leading European care services group for elderly and fragile people, has successfully issued new Schuldschein loans (a private placement loan issued under German law) for an amount of c. €380 million at historically low rates.

The Group initially targeted to issue €150 million, however the final issuance was increased to c. €380 million on the back of strong demand leading to a strong oversubscription and a high quality orderbook.

The funds will be used to reimburse shorter term more expensive debt both in 2021 and in 2022 as well as pre funding the Group’s liquidity and growth requirements under optimised conditions.

The maturities of the loans are between 5 and 8 years, mostly at fixed rate. Interest rate for the loans are below previous Schuldschein issuances, at 1.30% for the 5-year loan, 1.55% for 7-year and 1.70% for 8-year¹.

These conditions, together with the liability management undertaken, will contribute to the improving financing costs for the Group. It will also contribute to extend Korian’s average debt maturity² to 5.8 years compared to 4.5 years at the end of 2019.

After an inaugural 7-year issuance on the euro public bond market in October 2021 for €300m, this new issuance confirms Korian’s access to diverse debt markets and investors’ confidence in its attractive growth story and its particularly robust financial profile.

About Korian

Korian, the leading European care services group for elderly and fragile people. www.korian.com

Korian has been listed on Euronext Paris Section A since November 2006 and is included in the following indices: SBF 120, CAC Health Care, CAC Mid 60, CAC Mid & Small and MSCI Global Small Cap

Euronext ticker: KORI - ISIN: FR0010386334 – Reuters: KORI.PA – Bloomberg: KORI.FP

¹ For the floating tranches with a maturity 5 year and 7 years the cost is Euribor +1.30% and Euribor +1.55% respectively
² Excluding short term debt offset by cash