Conti Places Billion Euro Bond
Continental AG reports it has further improved its debt maturity profile through the placement of a euro-denominated bond with an aggregate principal amount of one billion euros. The seven year notes are to be issued by Conti-Gummi Finance B.V. and guaranteed by Continental Aktiengesellschaft and certain subsidiaries. The coupon will be 7.5 per cent per annum interest, payable semi-annually in arrears.
“We see this as a signal that investors have confidence in Continental and would regard this an attractive investment. Because of high demand, we increased the initially targeted minimum volume from 750 million to 1 billion euros,” explained Continental CFO Wolfgang Schäfer. “We will use the net proceeds in the same way as the proceeds of the first bond in July, namely for the partial prepayment of bank loans.”
The notes shall be listed on the stock exchanges in Frankfurt, Hamburg and Hanover. 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 to place the notes.
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