DGAP-News: KION GROUP AG / Key word(s): Financing
KION Group renews financing with significantly improved terms (news with
additional features)
05.02.2016 / 08:04
The issuer is solely responsible for the content of this announcement.
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- EUR 1.5 billion refinancing with new credit facility
reflecting investment grade terms
- Early redemption of EUR 450 million 6.75 per cent bond
- Significantly reduced interest costs and more flexibility
- Final step in transformation of pre-IPO financing structure
Wiesbaden, 5 February 2016 - KION Group is implementing a financing
structure with typical terms for established corporates. In this context it
is repaying the last bond issued before its IPO and is refinancing its old
pre-IPO credit facility now with significantly improved terms reflecting
investment grade style features. The EUR 450 million bond with a coupon of
6.75 per cent issued in 2013 and maturing in 2020 will be fully repaid on
15 February 2016. The bond and drawings under the old credit facility will
be repaid from a new corporate credit facility for EUR 1,500 million. This
transaction is the last step by KION Group to transform its financing
structure dating from before its IPO in June 2013.
The Wiesbaden based group expects significant interest savings: if the
refinancing had taken place at the beginning of 2015, annual interest
expenses for that year would have been ca. EUR 30 million lower. Under the
terms and conditions of the bond, early redemption payments of ca. EUR 15
million will be booked as financial expenses in the first quarter of 2016,
yet will be quickly recovered from the interest savings. In addition, the
reversal of the remaining capitalized borrowing costs of ca. EUR 11 million
for the bond and the old credit facility will also be recorded as financial
expenses in the first quarter of 2016, but will not impact cashflow.
"These financing transactions are further important milestones for the KION
Group, because we are now set up also on the financing side as an
established listed corporate", said the CFO of KION Group, Thomas Toepfer.
"We have now left the last elements of our financing from the early days of
the KION Group behind us. The new financing with investment grade style
features significantly improves the terms for the KION Group and its
flexibility to pursue its profitable growth."
The new corporate credit facility for EUR 1,500 million has two tranches.
The revolving credit line for EUR 1,150 million has a maturity of five
years with two extension possibilities for one year each. This credit line
will be used to fund existing bank debt and part of the bond repayment and
it will be available for working capital requirements, potential smaller
acquisitions and as a liquidity reserve. The second tranche for EUR 350
million with a three year maturity will be used to fund the bond repayment
until a potential refinancing in the capital markets.
The new corporate credit facility is unsecured and only guaranteed by KION
GROUP AG. It has investment grade style features and provides KION Group
with significant flexibility to grow its operating business and further
develop its end customer financing activities. The club deal was arranged
by KION Group with a group of thirteen relationship banks as Bookrunners
and Mandated Lead Arrangers.
Website: kiongroup.com/mediasite
Twitter: @kion_group
The Company
The KION Group - comprising the seven brands of Linde, STILL, Fenwick, OM
STILL, Baoli, Voltas and Egemin Automation - is the largest manufacturer of
industrial trucks in western and eastern Europe, the global number two in
the industry and the leading non-domestic supplier in China. The Linde and
STILL brands serve the premium segment worldwide. Fenwick is the largest
supplier of material handling products in France, while OM STILL is a
market leader in Italy. The Baoli brand focuses on the economy segment, and
Voltas is a leading provider of industrial trucks in India. Egemin
Automation is a leading Belgian logistics automation specialist.
The KION Group is present in more than 100 countries and, in 2014, employed
almost 23,000 people and generated revenue of around EUR4.7 billion. KION
GROUP AG is listed on Deutsche Börse's Frankfurt Stock Exchange, the MDAX
(the German stock index for medium-sized companies) and the STOXX Europe
600 index, which comprises the 600 largest companies in Europe.
Disclaimer
This document and the information contained herein are for information
purposes only and do not constitute a prospectus or an offer to sell or a
solicitation of an offer to buy any securities in the United States or in
any other jurisdiction.
This release contains forward-looking statements that are subject to
various risks and uncertainties. Future results could differ materially
from those described in these forward-looking statements due to certain
factors, e.g. changes in business, economic and competitive conditions,
regulatory reforms, results of technical studies, foreign exchange rate
fluctuations, uncertainties in litigation or investigative proceedings, and
the availability of financing. We do not undertake any responsibility to
update the forward-looking statements in this release.
Further information for the media
Michael Hauger
Head of Corporate Communications
Tel.: +49 (0)611 770 655
michael.hauger@kiongroup.com
Frank Brandmaier
Head of Corporate Media Relations
Tel.: +49 (0)611 770 752
frank.brandmaier@kiongroup.com
Further information for investors
Frank Herzog
Head of Corporate Finance
Tel.: +49 (0)611 770 303
frank.herzog@kiongroup.com
Dr Karoline Jung-Senssfelder
Head of Investor Relations and M&A
Tel.: +49 (0)611 770 450
karoline.jung-senssfelder@kiongroup.com
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Additional features:
Document: http://n.eqs.com/c/fncls.ssp?u=OVYNFFVTCF
Document title: Download press release as PDF
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05.02.2016 Dissemination of a Corporate News, transmitted by DGAP - a
service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.
The DGAP Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Media archive at www.dgap-medientreff.de and www.dgap.de
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Language: English
Company: KION GROUP AG
Abraham-Lincoln-Str. 21
65189 Wiesbaden
Germany
Phone: +49 (0)611 770-0
Fax: +49 (0)611 770-690
E-mail: info@kiongroup.com
Internet: www.kiongroup.com
ISIN: DE000KGX8881
WKN: KGX888
Indices: MDAX
Listed: Regulated Market in Frankfurt (Prime Standard); Regulated
Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover,
Munich, Stuttgart
End of News DGAP News Service
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435019 05.02.2016
DGAP-News: KION Group renews financing with significantly improved terms (news with additional features)
| Source: EQS Group AG