Conti aims to reduce interest costs further with new Eurobond

ERJ staff report (LMH)

Hanover, Germany – Continental is aiming to further reduce its interest costs and is planning to issue another benchmark-sized Eurobond. The intention is to issue a bond with a volume of at least €500 million and a term to maturity of seven years.

“We intend to use the proceeds generated by this issue for the early refinancing of the eight-year bond with a coupon of 7.125% issued in October 2010,” said CFO Wolfgang Schäfer. He also noted that no decision has yet been made regarding the early redemption of the bonds that have also been issued in October 2010 with a coupon of 6.5% and a term of six years.

The new bond is to be issued under the debt issuance program and is to be placed with both institutional and private investors.

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Press release from Continental