WalldorfSAP AG (NYSE: SAP) has successfully completed a $1.4 billion US private placement transaction of notes issued by SAP AG’s wholly owned subsidiary, SAP Ireland US-Financial Services Ltd. The transaction enhances the group’s financial flexibility by broadening its investor base and extending its overall maturity profile. Proceeds of the issue will be used to refinance existing group financial debt.

Due to SAP’s excellent credit profile, the transaction received strong demand in the US private placement market. A group of 33 institutional investors participated in five tranches, 17 of which are new to the SAP credit. The transaction consists of a $242.5 million tranche with a five year maturity, a $290 million tranche with a eight year maturity, a $444.5 million tranche with a ten year maturity, a $323 million tranche with a twelve year maturity and a $100 million tranche with a fifteen year maturity. The interest rates on the notes across all tranches range from 2.13% in the five year tranche to 3.53% in the fifteen year tranche. SAP’s transaction represents one of the largest US private placements of notes of 2012 year-to-date and the largest cross-border US private placement of notes ever.

J.P.Morgan, Goldman Sachs and Royal Bank of Scotland acted as joint lead agents for the transaction.

This publication shall not constitute an offer to sell or the solicitation of an offer to buy any note, nor shall there be any offer, solicitation or sale of the notes in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. The notes were issued in a private placement transaction exempt from registration under the U.S. Securities Act of 1933, as amended (Securities Act). The notes have not been and will not be registered under the Securities Act or any US state securities laws. Further, the notes may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements and, therefore, will be subject to substantial restrictions on transfer.