Continental arranges € 13 500 million in loans to fund purchase of Siemens VDO

Hanover, Germany - Continental AG, is closing the syndication of a €13 500 million loan package, supported by a consortium of international banks. The credit facility will provide the long-term financing of its purchase of Siemens VDO Automotive AG. Conti said the transaction was well received and will be healthily oversub­scribed. According to an announcement issued by the international automotive supplier on Friday in Hanover, a total of 39 banks are participating in the financing which has been led by Citi and Goldman Sachs.

Continental said it plans to repay a portion of the loan in short order by means of an increase in shareholders' equity not exceeding ten percent of outstanding shares and by issuing bonds.

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Press release from Continental