conservative financial policy with a commitment to low leverage.
Long and proven commitment to a prudent financial policy.
- the bulk of Randstad’s costs (c. 80%) are related to cost of services, which are strongly linked and directly attributable to the amount of revenue generated.
- in a downturn, there is unwinding of working capital which hedges economic cyclicality.
- both during the financial crisis of 2008 and the Covid-19 pandemic, the company has shown strong free cash flow generation, with a strong reduction in leverage in 2020 as a result (2008/9 leverage was also impacted by the Vedior acquisition).
- several of Randstad’s end-to-end services are inherently countercyclical such as career transition and workforce advisory.
instruments.
As at December 31, 2024, the Group had a € 1,750 million (2023: € 1,750 million) committed multi-currency syndicated revolving credit facility at its disposal, which matures in May 2029 (2023: May 2028). The facility agreement contains a covenant with respect to the net debt to EBITDA ratio (leverage ratio), as well as a paragraph on material adverse changes. The net debt to EBITDA ratio has a limit of 3.5x and is calculated based on the results of the Group on a 12-month basis. In certain cases, Randstad is allowed to report a leverage ratio of 4.25x EBITDA for a limited period of time. This credit facility has an interest rate that is based each time on the term of the drawing, increased by a margin above the applicable interbank or risk-free rate. The margin is variable and depends on Randstad's credit rating.
The facility agreement stipulates that the calculation of this ratio is based on the accounting policies as included in the annual report 2021, but excluding any liability under any lease (including a future lease), which would have been classified as an operating lease prior to January 1, 2019.
In 2024, the Group had two committed bilateral term loans of a total of € 120 million (2023: € 77 million), maturing January 2028 and a Eurobond of € 500 million (2023: zero), maturing March 2029. In 2024, Randstad successfully placed its inaugural bond to broaden its funding sources. The term loans have an interest rate that is each time based on the term of the drawing, increased by a margin fully aligned with the committed multi-currency syndicated revolving credit. The Eurobond has a fixed interest rate, which was swapped to a floating rate with a fixed margin.
covenants.
Covenants are fully aligned with the committed multi-currency syndicated revolving credit facility. The term loans have an interest rate that is each time based on the term of the drawing, increased by a margin fully aligned with the committed multi-currency syndicated revolving credit. Leverage ratio excluding IFRS 16 'Leases' ended at 1.6, compared to 0.3 in 2023.
maturity schedule
-
2028
- Year 2028
- Amount maturing (in €m) 120
- Type of debt Term loan
-
2029
- Year 2029
- Amount maturing (in €m) 500
- Type of debt Bond
-
2029
- Year 2029
- Amount maturing (in €m) 1,750
- Type of debt Revolving credit facility
| Year | Amount maturing (in €m) | Type of debt | ||
|---|---|---|---|---|
|
2028
|
120
|
Term loan
|
||
|
2029
|
500
|
Bond
|
||
|
2029
|
1,750
|
Revolving credit facility
|
euro medium term note programme.
Randstad NV updated its Euro Medium Term Note (EMTN) Programme in March 2025. The programme allows Randstad NV to issue Notes for up to an undefined amount.
outstanding bonds.
randstad successfully issues inaugural €500m Eurobond.
Randstad NV, the world’s leading talent company, has successfully placed the issuance of €500m bonds. The bonds have a 5-year maturity, due 2029, and an annual coupon of 3.61%. The net proceeds of this inaugural bond issue will be used by Randstad for general corporate purposes and the diversification of the capital structure. BNP Paribas (B&D), Bank of America, Commerzbank and ING acted as joint bookrunners.
credit rating.
Randstad has received an issuer credit rating by Moody’s on 12 February 2024, who assigned a solid long-term investment grade rating with a Stable Outlook of Baa1. Reflecting Randstad's leading position in the staffing and recruitment industry, its client and operational diversification, solid growth and resilience through different economic cycles, strong credit metrics and solid free cash flow generation. The rating increases Randstad's access to capital markets and helps to broaden its funding sources.