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.
â€œWe 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 â‚¬750 million to â‚¬1 billion,â€ explained Continental CFO Wolfgang SchÃ¤fer. â€œWe 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