Schaeffler AG places loans of 1.4 billion Euro with institutional investors in Europe and in the US
2012-02-14 | HERZOGENAURACH
- Institutional loans upsized to approximately €1.4 billion
- One Euro and one USD tranche
- Second milestone of the refinancing concept successfully implemented
Schaeffler AG successfully placed approximately €1.4 billion of loans with institutional investors today. This transaction represents the second key element of the comprehensive refinancing agreement that Schaeffler AG had entered into with its banks on January 27, 2012. The first part was the successful €2.0 billion bond issuance at the beginning of February, marking the company’s debut on the capital markets.
Given the strong demand, the originally envisaged issuance of €1.0 billion was increased to €1.4 billion. The issue consists of one Euro and one U.S. dollar tranche. Both tranches have maturities of five years with variable interest rates. The Euro tranche has a total volume of €450 million and an interest rate of 5.0 percent over Euribor. The dollar tranche totals approximately $1.3 billion and comes with an interest rate of 4.75 percent over Libor.
Klaus Rosenfeld, CFO of Schaeffler AG, said: "With the placement of the institutional loan tranches we have successfully executed the second milestone of our new refinancing concept. This not only opens a new capital market segment for us, but also further improves our financing conditions."
The company mandated BNP Paribas, Deutsche Bank, HSBC and JP Morgan with the placement of the institutional loans. The net proceeds will be used to repay existing bank loans.
Certain statements in this press release are forward looking statements. By their nature, forward looking statements involve a number of risks, uncertainties and assumptions that could cause actual results or events to differ materially from those expressed or implied by the forward looking statements. These risks, uncertainties and assumptions could adversely affect the outcome and financial consequences of the plans and events described herein. No one undertakes any obligation to publicly update or revise any forward looking statement, whether as a result of new information, future events or otherwise. You should not place any undue reliance on forward looking statements, which speak only as of the date of this press release. Statements contained in this press release regarding past trends or events should not be taken as representation that such trends or events will continue in the future. The cautionary statements set out above should be considered in connection with any subsequent written or oral forward looking statements that Schaeffler, or persons acting on its behalf, may issue. No statement in this press release is intended to be nor may be construed as a profit forecast.
Please find further information on our website: www.schaeffler-group.com/ir
Publisher: Schaeffler AG
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