Capital/Financing Update • Dec 21, 2012
Capital/Financing Update
Open in ViewerOpens in native device viewer
News Details
Corporate | 21 December 2012 11:00
Continental AG: Continental Strives For Further Improvement Of Financing Structure
Continental AG / Key word(s): Miscellaneous
21.12.2012 / 11:00
Press Release
Continental Strives For Further Improvement
Of Financing Structure
– Refinancing initiated for syndicated loan facilities maturing in April 2014
– Terms through 2016 and 2018 and greater flexibility targeted
– Signing of loan agreement in January 2013 expected
Hanover, December 21, 2012. Continental, the international automotive supplier, got off to an early start with the process of refinancing the syndicated loan due in April 2014. In so doing, the DAX 30 company is aiming to further improve its financing structure and maturity profile, while at the same time enhancing its flexibility. Within the scope of the planned refinancing, the loan volume is to be reduced slightly – to a total of EUR4.5 billion – and split up into two tranches with different maturities: a term loan in the amount of EUR1.5 billion, with a term of three years, and a five-year revolving credit facility in the amount of EUR3 billion. Among other things, the company also intends to ease the documentation complexity.
‘We are confident that we shall be able to conclude the negotiations and sign the credit agreement in January 2013,’ announced Wolfgang Schäfer, Continental’s CFO, in Hanover on Friday. ‘Our company has developed very well in the past few years. We intend to take advantage of our much better financial position to further improve the maturity profile of our financial indebtedness as well as agree on the release of asset collateral and the improvement of certain other terms.’
Issuing five bonds and generating substantial free cash flow (FCF) have enabled the company to chop almost EUR9 billion off the EUR13.5 billion syndicated loan originally agreed in 2007. In the last three years, the company’s net indebtedness has declined by more than EUR2.5 billion. It stood at EUR6.8 billion at the end of the 3rd quarter of 2012 while the gearing ratio (net indebtedness divided by total equity) amounted to 78 percent.
For your information:
A revolving credit facility is the commitment of one or more banks to grant a certain amount up to a limit on agreed terms dependant on the needs of the borrower.
Unlike a term loan, a revolving credit facility gives the borrower – during the term agreed upon – the possibility of claiming all or part of the amount the bank has committed itself to lending. Repaid amounts can be utilised again. At the end of the third quarter of 2012, Continental had unused committed credit lines in the amount of just under EUR2.6 billion. The EUR2.5 billion revolving credit facility under the syndicated loan facility was utilized with EUR602 million only.
With sales of EUR30.5 billion in 2011, Continental is among the leading automotive suppliers worldwide. As a supplier of brake systems, systems and components for powertrains and chassis, instrumentation, infotainment solutions, vehicle electronics, tires, and technical elastomers, Continental contributes to enhanced driving safety and global climate protection. Continental is also an expert partner in networked automobile communication. Continental currently has approximately 170,000 employees in 46 countries.
Press contact:
| Dr. Felix Gress Senior Vice President Corporate Communications & Public Affairs Continental AG Vahrenwalder Strasse 9 30165 Hanover Phone: +49 (0) 511 938-1485 Fax: +49 (0) 511 938-1055 Email: [email protected] |
Hannes Boekhoff Vice President for Media Relations Continental AG Vahrenwalder Strasse 9 30165 Hanover Phone: +49 (0) 511 938-1278 Fax: +49 (0) 511 938-1016 Email: [email protected] |
This press release is available in the following languages: German, English
Online media database: www.mediacenter.continental-corporation.com
Financial reports: www.continental-ir.de
End of Corporate News
21.12.2012 Dissemination of a Corporate News, transmitted by DGAP – a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
DGAP’s Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases.
Media archive at www.dgap-medientreff.de and www.dgap.de
| Language: | English |
| Company: | Continental AG |
| Vahrenwalder Straße 9 | |
| 30165 Hannover | |
| Germany | |
| Phone: | +49 (0)511 938-1068 |
| Fax: | +49 (0)511 938-1080 |
| E-mail: | [email protected] |
| Internet: | www.conti.de |
| ISIN: | DE0005439004 |
| WKN: | 543900 |
| Indices: | DAX |
| Listed: | Regulierter Markt in Frankfurt (Prime Standard), Hamburg, Hannover, Stuttgart; Freiverkehr in Berlin, Düsseldorf, München; Terminbörse EUREX; Luxembourg, SIX |
| End of News | DGAP News-Service |
| - - - |
| 197711 21.12.2012 |
Building tools?
Free accounts include 100 API calls/year for testing.
Have a question? We'll get back to you promptly.