Continental is planning to issue a further benchmark bond as part of its refinancing strategy. The international automotive supplier has mandated a bank consortium, led by Deutsche Bank, BofA Merrill Lynch, BNP PARIBAS, Crédit Agricole CIB, DZ BANK AG and HSBC eurodenominated notes with qualified investors internationally. With an envisaged issue volume of at least €750 million, the planned benchmark bond will have a maturity of seven years. A final decision as to the issue volume and the conditions will be made within the next few days, the company announced in Hanover on September 2.
"After returning successfully to the bond market in July, our current as well as potential new investors indicated that they are still very interested in a further bond issuance. We want to benefit from this demand to further reduce our bank loans as planned while at the same time further improving our debt maturity profile" explained Wolfgang Schäfer, CFO of Continental.
The bond's structure will be substantially the same as that of the secured €750 million secured bond issued in July. The notes available under the announced issue will be transferable in minimum denomination of €50,000. The notes will be issued by Conti-Gummi Finance B.V., Netherlands, and guaranteed by Continental AG and selected subsidiaries of Continental AG. Application will be made to list the notes on the Open Market (Freiverkehr) of the Frankfurt Stock Exchange and of the Hamburg and Hanover stock exchanges. Proceeds of the issue will be utilized for the partial prepayment of bank loans of the Continental.
"After returning successfully to the bond market in July, our current as well as potential new investors indicated that they are still very interested in a further bond issuance. We want to benefit from this demand to further reduce our bank loans as planned while at the same time further improving our debt maturity profile" explained Wolfgang Schäfer, CFO of Continental.
The bond's structure will be substantially the same as that of the secured €750 million secured bond issued in July. The notes available under the announced issue will be transferable in minimum denomination of €50,000. The notes will be issued by Conti-Gummi Finance B.V., Netherlands, and guaranteed by Continental AG and selected subsidiaries of Continental AG. Application will be made to list the notes on the Open Market (Freiverkehr) of the Frankfurt Stock Exchange and of the Hamburg and Hanover stock exchanges. Proceeds of the issue will be utilized for the partial prepayment of bank loans of the Continental.
