ERJ staff report (TB)
Tire Business Report
Hanover, Germany – Continental A.G. is issuing a Eurobond valued at €750 million in a move to cut interest costs and improve its debt maturity profile.
The bond has a term of five years and will pay 3 percent interest per year, Conti said. It will be listed on the regulated market of the Luxembourg Stock Exchange. BNP Paribas, Citi, Deutsche Bank, ING and UniCredit are acting as joint-bookrunners on the transaction.
The proceeds of the issuance will be used for the partial early refinancing of the bond issued in September 2010, according to Chief Financial Officer Wolfgang Schäfer.
That bond, a 7.5-percent Eurobond with a nominal amount of €1 billion, was issued by the firm's Conti-Gummi Finance B.V. subsidiary. The bond will be terminated early, Conti said, with repayment set for 16 Sept, four years prior to the original maturity, at a redemption price of 103.75 percent.
The respective call notice has already been sent to the notes representative and to the clearing system for notification to the bondholders, the company said.
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Article from Tire Business
News release from Continental