Conti Issuing Additional Eurobonds

After a positive response to its two previously placed bonds, Continental AG has announced plans to issue further Eurobonds with benchmark volume. The company has again mandated a bank consortium led by Citi and The Royal Bank of Scotland to place two tranches of euro-denominated bonds with qualified German and international investors. A maximum issue volume of 1.25 billion euros and two tranches with maturities in 2016 and 2018 are planned. Upon announcing the upcoming bonds on September 27, Continental said the issue volume and the conditions are expected to be finalized in the “next few days”.

“In our communication with existing and potential investors, we received the feedback that there continues to be strong demand for Continental bonds. The bonds we have already placed were also significantly oversubscribed”, said Continental CFO Wolfgang Schäfer. “In response to this continued strong demand, we have decided to issue further bonds with timing in close connection to the predecessors. This will help us to quickly achieve our goal of significantly improving the maturity profile. We will again use the issue proceeds for the partial, early repayment of our bank liabilities. This bond issue will be the last bond transaction of 2010.”

The structure of these bonds is fundamentally the same as the 750 million euro secured bond issued in July and the billion euro bond issued earlier this month. The minimum denominations for this bond will again be 50,000 euros. The bond will be issued by Conti-Gummi Finance B.V. (Netherlands) and guaranteed by Continental AG and certain of its subsidiaries. It will be listed on the Frankfurt Stock Exchange’s ‘Freiverkehr’, or open market, as well as the Hamburg and Hanover stock exchanges.