Conti Reports Successful Eurobond Placement

Continental AG reports its €750 million euro-denominated bond has been successfully placed with qualified investors in Germany and abroad. With this, says Conti, the company has completed a further step in improving its debt maturity profile. The notes have a term of five years and will be issued by Conti-Gummi Finance B.V. and guaranteed by Continental Aktiengesellschaft and certain company subsidiaries. The coupon will be 8.5 per cent, with interest payable semi-annually in arrears.

“We see this as an important sign of confidence of the capital markets in the company and as a confirmation of our refinancing strategy. Because of high demand, we increased the initially targeted minimum volume from €500 million to €750 million,” explained Continental CFO Wolfgang Schäfer. “We will use the net proceeds to repay a portion of the syndicated VDO facility and will continue to further improve our debt maturity profile. We are not, however, under time pressure with this.”

The notes will be listed on the Frankfurt Stock Exchange’s Open Market, and Conti has mandated a bank consortium led by Citi and the Royal Bank of Scotland to place the notes. As bookrunners, the bank consortium includes Commerzbank, Deutsche Bank, ING, Landesbank Baden-Württemberg and UniCredit Bank.