Schaeffler agrees €3.9 billion refinancing

ERJ staff report (LMH)

Herzogenaurach, Germany – German auto components supplier Schaeffler has signed a new credit agreement, worth €3.9 billion to replace existing bank loans, Reuters reports.

“Through these measures, cost of debt will be further reduced and capital structure on the holding level will be significantly improved,” Schaeffler is reported to have said.

Reuters said the arrangement, struck with seven international banks, includes term loans worth €2.18 billion with maturities on board 2017, as well as a revolving credit facility with €200 million.

Schaeffler, which owns 49.9% of tire maker Continental, said the loans and credit facility have “significantly improved conditions” compared with 2009 credit financing they replace, Reuters reported.

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Article from Reuters