Capital/Financing Update • Jan 23, 2013
Capital/Financing Update
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Corporate | 23 January 2013 10:08
Continental AG: Continental Successfully Refinances
Continental AG / Key word(s): Miscellaneous
23.01.2013 / 10:08
Press Release
Continental Successfully Refinances
– New agreement on EUR4.5 billion syndicated loan signed
– Terms through 2016 and 2018 further improving Continental's debt maturity profile
– Higher degree of security thanks to geographically broader consortium of banks
Hanover, January 23, 2013. The international automotive supplier Continental has signed a new syndicated loan agreement, thereby further improving its debt maturity profile. Committed to by approximately 30 domestic and international banks, the credit amount has been reduced slightly. It now totals EUR4.5 billion and is split up into two tranches of differing duration – a loan in the amount of EUR1.5 billion, with a term of three years, and a five-year revolving credit line in the amount of EUR3 billion. For the new syndicated loan, Continental has been able to obtain the release of the asset collateral previously put up for the financing and has also implemented further simplifications with regards to the documentation.
'The new loan agreement not only improves our financing and debt maturity profile but also puts our financing on a geographically broader footing,' reported Continental CFO Wolfgang Schäfer following the signing of the new agreement, adding: 'This will enable us to better absorb regional fluctuations in the global capital market environment in the future and generally respond more flexibly to volatile markets. The great trust that the banks have again demonstrated gives us renewed confidence that with our long-term strategy, we are pursuing the right path for Continental.'
Mainly by launching five bonds and generating free cash flow (FCF), the DAX 30 company had, in the interim, been able to reduce almost EUR9 billion off the original EUR13.5 billion syndicated loan agreed in 2007. In the last three years, the company's net indebtedness has dropped by more than EUR2.5 billion. At the end of the 3rd quarter of 2012, it stood at EUR6.8 billion. The gearing ratio (net indebtedness divided by total equity) amounted to 78 percent at that point in time. Continental closed the third quarter of 2012 with unused credit line commitments in the amount of just under EUR2.6 billion. Up until then, the company had availed a mere EUR602 million of the EUR2.5 billion revolving credit line under the terms of the previous syndicated loan.
On March 7, 2013, Continental will present preliminary figures for fiscal year 2012 at its Annual Press Conference in Frankfurt/Main.
With provisional sales of EUR32.7 billion in 2012, 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 more than 170,000 employees in 46 countries.
Press contact:
| Hannes Boekhoff Vice President for Media Relations Continental AG Vahrenwalder Strasse 9 30165 Hanover, Germany Phone: +49 (0) 511 938-1278 Fax: +49 (0) 511 938-1016 Email: [email protected] |
Antje Lewe Spokeswoman Continental AG Vahrenwalder Strasse 9 30165 Hanover, Germany Phone: +49 (0) 511 938-1364 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
23.01.2013 Dissemination of a Corporate News, transmitted by DGAP – a company of EquityStory AG.
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| 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 |
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| 199655 23.01.2013 |
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