Bond issue with total volume of EUR 1.5 billion
Issuance proceeds to be used for refinancing of upcoming debt maturities
Treasury management exercise results in enhanced debt maturity profile for the Schaeffler Group
The global automotive and industrial supplier Schaeffler today successfully placed corporate bonds with a total volume of EUR 1.5 billion with international investors. The bond placement was carried out under the debt issuance program of Schaeffler AG and comprises two tranches:
EUR 750 million 2.750 % bond, due 2025
EUR 750 million 3.375 % bond, due 2028
Because of strong investor demand, the bond placement was several times oversubscribed.
The proceeds from the new bond issue will be used for the proactive early refinancing of existing debt. In this context, holders of a EUR 750 million bond with maturity in 2022 have received a redemption offer. A bank loan of
approximately EUR 238 million, maturing in December 2022, is also to be repaid. Finally, it is planned to call a EUR 600 million bond issued by Schaeffler Finance B.V. early.
“Today’s bond issuance by the Schaeffler Group is a proactive treasury management exercise to refinance upcoming debt maturities,” said Dr. Klaus Patzak, CFO of Schaeffler AG. “Full implementation of the transaction will enhance the company’s debt maturity profile. The next major maturity will then not fall until 2024.”
Settlement of the new bonds is planned for October 12, 2020. The bonds will be listed on the Luxembourg Stock Exchange. Schaeffler mandated Bank of America, BNP Paribas, Deutsche Bank and HSBC to manage the placement as active joint bookrunners. FAG 7206 B-TVP-UA bearings online , pls click here :
This release does not constitute an offer of securities for sale or a solicitation of an offer to purchase securities. Neither this announcement nor anything contained herein shall form the basis of, or be relied upon in connection with,any offer or commitment whatsoever in any jurisdiction.This communication is an advertisement for the purposes of Regulation (EU) 2017/1129 and underlying legislation. It is not a prospectus. The base prospectus is available, and the Final Terms of the bonds when published will be available, on the website of the Luxembourg Stock Exchange at https://www.bourse.lu/programme/Programme-Schaeffler/14509.
Forward-looking statements and projections
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.