.
- Total volume of €750 million
- Proceeds to be used for early repayment of bank loans
- Term of five years, coupon of 8.5 percent
- Further improvement of debt maturity profile to be implemented
Within a few days, Continental has successfully placed a eurodenominated bond with an aggregate principal amount of €750 million with qualified investors in Germany and abroad. With this, the company has completed a further step in improving its debt maturity profile. The notes have a term of five years and will be issued by Conti-Gummi Finance B.V. and guaranteed by Continental Aktiengesellschaft and certain of its subsidiaries. The coupon will be 8.5 percent. Interest will be payable semiannually in arrears, the company announced in Hanover on Monday.
"We see this as an important sign of confidence of the capital markets in the company and as a confirmation of our refinancing strategy. Because of high demand, we increased the initially targeted minimum volume from €500 million to €750 million," explained Continental CFO Wolfgang Schäfer. "We will use the net proceeds to repay a portion of the syndicated VDO facility and will continue to further improve our debt maturity profile. We are not, however, under time pressure with this."
The notes shall be listed on the Open Market (Freiverkehr) of the Frankfurt Stock Exchange. The international automotive supplier has mandated a bank consortium led by Citi and the Royal Bank of Scotland to place the notes. As bookrunners, the bank consortium includes Commerzbank, Deutsche Bank, ING, Landesbank Baden-Württemberg and UniCredit Bank.
This announcement does not contain or constitute an offer of, or the solicitation of an offer to buy or subscribe for, securities to any person in Australia, Canada, Japan, or the United States of America (the “United States”) or in any jurisdiction to whom or in which such offer or solicitation is unlawful. The securities referred to herein may not be offered or sold in the United States absent registration under the U.S. Securities Act of 1933, as amended (the “Securities Act”) or another exemption from, or in a transaction not subject to, the registration requirements of the Securities Act. Subject to certain exceptions, the securities referred to herein may not be offered or sold in Australia, Canada or Japan or to, or for the account or benefit of, any national, resident or citizen of Australia, Canada or Japan. The offer and sale of the securities referred to herein has not been and will not be registered under the Securities Act or under the applicable securities laws of Australia, Canada or Japan. There will be no public offer of the securities in any jurisdiction.
This announcement is directed at and/or for distribution in the United Kingdom only to (i) persons who have professional experience in matters relating to investments falling within article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the “Order”) or (ii) high net worth entities falling within article 49(2)(a) to (d) of the Order (all such persons are referred to herein as “relevant persons”). This announcement is directed only at relevant persons. Any person who is not a relevant person should not act or rely on this announcement or any of its contents. Any investment or investment activity to which this announcement relates is available only to relevant persons and will be engaged in only with relevant persons.
This document has been prepared on the basis that any offer of Notes in any Member State of the European Economic Area (“EEA”) which has implemented the Prospectus Directive (2003/71/EC) (each, a “Relevant Member State”) will be made pursuant to an exemption under the Prospectus Directive, as implemented in that Relevant Member State, from the requirement to publish a prospectus for offers of Notes. Accordingly any person making or intending to make any offer in that Relevant Member State of Notes which are the subject of the placement contemplated in this announcement may only do so in circumstances in which no obligation arises for Continental to publish a prospectus pursuant to Article 3 of the Prospectus Directive or supplement a prospectus pursuant to Article 16 of the Prospectus Directive, in each case, in relation to such offer. Continental has not authorized, nor does it authorize, the making of any offer of Notes in circumstances in which an obligation arises for Continental to publish or supplement a prospectus for such offer.
- Total volume of €750 million
- Proceeds to be used for early repayment of bank loans
- Term of five years, coupon of 8.5 percent
- Further improvement of debt maturity profile to be implemented
Within a few days, Continental has successfully placed a eurodenominated bond with an aggregate principal amount of €750 million with qualified investors in Germany and abroad. With this, the company has completed a further step in improving its debt maturity profile. The notes have a term of five years and will be issued by Conti-Gummi Finance B.V. and guaranteed by Continental Aktiengesellschaft and certain of its subsidiaries. The coupon will be 8.5 percent. Interest will be payable semiannually in arrears, the company announced in Hanover on Monday.
"We see this as an important sign of confidence of the capital markets in the company and as a confirmation of our refinancing strategy. Because of high demand, we increased the initially targeted minimum volume from €500 million to €750 million," explained Continental CFO Wolfgang Schäfer. "We will use the net proceeds to repay a portion of the syndicated VDO facility and will continue to further improve our debt maturity profile. We are not, however, under time pressure with this."
The notes shall be listed on the Open Market (Freiverkehr) of the Frankfurt Stock Exchange. The international automotive supplier has mandated a bank consortium led by Citi and the Royal Bank of Scotland to place the notes. As bookrunners, the bank consortium includes Commerzbank, Deutsche Bank, ING, Landesbank Baden-Württemberg and UniCredit Bank.
This announcement does not contain or constitute an offer of, or the solicitation of an offer to buy or subscribe for, securities to any person in Australia, Canada, Japan, or the United States of America (the “United States”) or in any jurisdiction to whom or in which such offer or solicitation is unlawful. The securities referred to herein may not be offered or sold in the United States absent registration under the U.S. Securities Act of 1933, as amended (the “Securities Act”) or another exemption from, or in a transaction not subject to, the registration requirements of the Securities Act. Subject to certain exceptions, the securities referred to herein may not be offered or sold in Australia, Canada or Japan or to, or for the account or benefit of, any national, resident or citizen of Australia, Canada or Japan. The offer and sale of the securities referred to herein has not been and will not be registered under the Securities Act or under the applicable securities laws of Australia, Canada or Japan. There will be no public offer of the securities in any jurisdiction.
This announcement is directed at and/or for distribution in the United Kingdom only to (i) persons who have professional experience in matters relating to investments falling within article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the “Order”) or (ii) high net worth entities falling within article 49(2)(a) to (d) of the Order (all such persons are referred to herein as “relevant persons”). This announcement is directed only at relevant persons. Any person who is not a relevant person should not act or rely on this announcement or any of its contents. Any investment or investment activity to which this announcement relates is available only to relevant persons and will be engaged in only with relevant persons.
This document has been prepared on the basis that any offer of Notes in any Member State of the European Economic Area (“EEA”) which has implemented the Prospectus Directive (2003/71/EC) (each, a “Relevant Member State”) will be made pursuant to an exemption under the Prospectus Directive, as implemented in that Relevant Member State, from the requirement to publish a prospectus for offers of Notes. Accordingly any person making or intending to make any offer in that Relevant Member State of Notes which are the subject of the placement contemplated in this announcement may only do so in circumstances in which no obligation arises for Continental to publish a prospectus pursuant to Article 3 of the Prospectus Directive or supplement a prospectus pursuant to Article 16 of the Prospectus Directive, in each case, in relation to such offer. Continental has not authorized, nor does it authorize, the making of any offer of Notes in circumstances in which an obligation arises for Continental to publish or supplement a prospectus for such offer.
