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Heidelberg optimizes financial framework - annual interest saving of some €6 million
Company partially redeems existing high-yield bond running to 2018
Around €64.5 million from the bond to be repaid from cash on hand in mid-April
Financing structure improved: Lower annual interest means greater room for maneuver in future
Heidelberger Druckmaschinen AG (Heidelberg) is improving its financing structure. The company today decided to redeem a further sum of around €64.5 million from the high-yield bond (with a coupon of 9.25 percent), which runs to 2018 and has a current volume of around €115 million. The sum will be repaid on April 15, 2016. Issued in 2011 with an original volume of some €300 million, the bond was a key element in using long-term capital market instruments to diversify the company’s financing and has gradually been repaid since then. The latest repayment is being made from cash on hand and the annual interest saving of around €6 million will have a positive impact on the financial result. As well as investing in growth areas such as the digital and services sectors, the company is thus also in a position to further strengthen its financing structure. As part of the reorientation of Heidelberg, reducing the level of debt will create additional options for the company’s strategic further development.
“We are continuously working on optimizing our financing framework step by step,” said CFO Dirk Kaliebe. “Thanks to the annual savings, we have succeeded in giving the company greater financial scope for making acquisitions and investing in growth and innovation,” he added.
In accordance with the bond conditions, the early redemption will take place by means of a public announcement with effect from April 15, 2016 with a redemption value, including redemption premium, of around 102.3 percent. The notice of redemption can also be viewed directly on the Luxembourg Stock Exchange’s website.
This press release contains forward-looking statements based on assumptions and estimations by the Management Board of Heidelberger Druckmaschinen Aktiengesellschaft. Even though the Management Board is of the opinion that those assumptions and estimations are realistic, the actual future development and results may deviate substantially from these forward-looking statements due to various factors, such as changes in the macro-economic situation, in the exchange rates, in the interest rates and in the print media industry. Heidelberger Druckmaschinen Aktiengesellschaft gives no warranty and does not assume liability for any damages in case the future development and the projected results do not correspond with the forward-looking statements contained in this press release.
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