Conti to raise a further euro 1250 million

ERJ staff report (DS)

Hanover, Germany-- Following two successfully placed bonds, Continental is planning to issue further Eurobonds. A maximum issue volume of €1.25 billion and two tranches with maturities in 2016 and 2018 are planned. The issue volume and the conditions are expected to be finalised in the next few days, the company announced in Hanover today.

Conti once again appointed a bank consortium led by Citi and The Royal Bank of Scotland to place two tranches of euro-denominated bonds with qualified investors in Germany and abroad. The bank consortium further includes Commerzbank, Goldman Sachs, ING, Landesbank Baden-Württemberg and UniCredit Bank as bookrunners.

“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.”

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Press release from Continental