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After Adecco announced a €400 million buyback programme of its shares in June, the staffing firm reported on Tuesday that it has increased its outstanding CHF 250 million (€205.6 million) bonds, due in December 2017, by CHF 100 million (€82.2 million).
The company said that the proceeds will be used to fund the share buyback programme with the aim of subsequent cancellation of the shares and reduction of the share capital.
The company said that this transaction completes the funding of the share buyback which has been financed by cash and new bond issues.
After announcing the news this morning, the company’s share price dropped by -1.5% to CHF 47.53. The firm’s market value is CHF 9.13 billion, making it the world's largest staffing firm by market capitalisation.
Adecco Group is currently rated as BBB (stable) by Standard & Poor’s and Baa3 (stable) by Moody’s.
Adecco has launched the buyback programme in June because of the firm’s “solid financial position and strong cash flow generation.”
The move underlines the company’s “commitment to manage its capital structure for the benefit of its stakeholders, without compromising the Group’s growth opportunities and financial flexibility,” Adecco said.
In August, the company’s second-quarter revenue increased marginally by +1% as business operations in Europe remained challenging, particularly in its largest single market France, with demand also slowing in Germany and Italy.