Continental Takes Advantage of Positive Capital Market Environment to Issue USD Bond
Minimum volume of USD 500 million planned / Further improvement of maturity profile of financial liabilities
"Our additional investments in the US have prompted us to issue a bond in US dollars for the first time. With this step, we are improving the maturity profile of our financial liabilities again at an early stage and benefiting in particular from the currently attractive capital market environment," explained Wolfgang Schäfer, CFO at Continental. The bonds planned for issue will be issued in minimum tradable units of USD 150,000. They will be issued by Continental Rubber of America, Corp., USA, and guaranteed by Continental AG and selected subsidiaries. The bonds are expected to be traded on the over-the-counter market (Freiverkehr) of the Frankfurt Stock Exchange.
In 2010, the company issued four euro-denominated bonds with different maturities in an aggregate principal amount of €3 billion, which it used to repay a significant portion of its syndicated loan and improve the maturity profile of its financial liabilities.
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 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), as amended (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 or any other person 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 or any other person to publish or supplement a prospectus for such offer.
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Continental Reifen Deutschland GmbH
With sales of €30.5 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 169,000 employees in 46 countries.