subsidiaries of Birkenstock Holding plc signed a new term loan and revolving credit facilities agreement with a syndicate of nine banks providing for new facilities with aggregate loans and commitments of approximately EUR 850 million that will be used to refinance the existing term loans and to replace the undrawn ABL facility with a new revolving credit facility (RCF). The total volume of commitments received exceeded the financing volume of approximately EUR 850 million by more than 30 percent. In connection with this refinancing, the Company is reducing the outstanding amount of term loans by approximately USD 50 million.

This step reflects BIRKENSTOCK's strong liquidity position and its commitment to balance sheet deleveraging. The previous EUR Term Loan in the amount of EUR 375 million will be replaced by an analogous EUR Term Loan in the amount of EUR 375 million, the previous USD Term Loan in the amount of USD 330 million will be replaced by a USD Term Loan in the amount of USD 280 million and the previous Asset Based Lending Facility will be replaced by a revolving credit facility in the amount of EUR 225 million. In connection with this refinancing, BIRKENSTOCK is reducing the outstanding amount of term loans by approximately USD 50 million, which reduces the USD liabilities by approximately 15 percent.

This also reflects BIRKENSTOCK's goal of further reducing debt on the balance sheet. As a result of this refinancing, BIRKENSTOCK expects to achieve credit margin savings in the mid-single-digit million EUR range per year with potential for further cost savings. The new loan agreement will be provided by a banking syndicate of nine banks which reduces the number of lenders significantly compared with the former loan agreement and therefore also reduces the complexity and costs related to lender relationship management and reporting obligations in the future.

Additionally, BIRKENSTOCK is, due to the elimination of the asset-based lending structure, providing a reduced collateral package in connection with the new facilities and expects compliance with reporting obligations to be more efficient under the new financing structure.