Conti places Euro 1 billion of bonds
ERJ staff report (DS)
Hanover, Germany -- Continental successfully placed a euro-denominated bond with an aggregate principal amount of euro 1000 million with qualified investors in Germany and abroad. The notes have a term of seven years. They will be issued by Conti-Gummi Finance B.V. and guaranteed by Continental Aktiengesellschaft and certain of its subsidiaries. The coupon will be 7.5 percent p.a. Interest will be payable semi-annually in arrears, as announced by the company in Hanover on Friday.
“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,†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.â€
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Press release from Continental
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