.
- Seven-year bond issue of at least €500 million planned
- Proceeds to be used for early refinancing of one of the bonds issued in October 2010
- Eight-year Eurobond that has been issued in October 2010 to be redeemed early
Continental, the international automotive supplier, tire manufacturer and industrial partner, 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 of this latest step to further improve the maturity profile of financial liabilities. 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. The joint bookrunners for the transaction are Bank of America, Merill Lynch, Commerzbank AG, Credit Agricole CIB, DZ Bank AG, Mediobanca and The Royal Bank of Scotland. The bond is to be issued in denominations of €1,000 and listed on the regulated market of the Luxembourg Stock Exchange.
In addition, Continental has called today the Eurobond (ISIN DE000A1A1P25) issued in October 2010 by Conti-Gummi Finance B.V. with a coupon of 7.125% and a nominal volume of €625 million for early redemption. This bond will be redeemed early on November 8, 2013, five years before its original maturity. The redemption price is 103.563%. The corresponding call notice has been sent today to the joint representative and the clearing system for notification to the bondholders.
Continental set up a debt issuance program with a total volume of €5 billion in May of this year. This enables Continental to respond even more flexibly to market developments and to place short, medium, and long-term bonds on the capital market quickly. Continental already issued a five-year Eurobond with a nominal volume of €750 million and a coupon of 3% under this program in July.
NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES OF AMERICA, AUSTRALIA, CANADA OR JAPAN.
This announcement does not contain or constitute an offer of, or the solicitation of an offer to buy or subscribe for, securities to any person in Australia, Canada, Japan, or the United States of America (the "United States") or in any jurisdiction to whom or in which such offer or solicitation is unlawful. The securities referred to herein have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the "Securities Act") or the laws of any state within the U.S., and may not be offered or sold in the United States except in a transaction not subject to, or pursuant to an applicable exemption from, the registration requirements of the Securities Act or any state securities laws. This announcement and the information contained herein may not be distributed or sent into the United States, or in any other jurisdiction in which offers or sales of the securities described herein would be prohibited by applicable laws and should not be distributed to publications with a general circulation in the United States.
The Notes are being offered and sold outside the United States only in reliance on Regulation S under the Securities Act. Subject to certain exceptions, the securities referred to herein may not be offered or sold in Australia, Canada or Japan or to, or for the account or benefit of, any national, resident or citizen of Australia, Canada or Japan. The offer and sale of the securities referred to herein has not been and will not be registered under the Securities Act or the laws of any state within the U.S. or under the applicable securities laws of Australia, Canada or Japan. There will be no public offer of the Notes in any such jurisdiction.
This document has been prepared on the basis that any offer of Notes in any Member State of the European Economic Area ("EEA") which has implemented the Prospectus Directive (2003/71/EC), as amended (each, a "Relevant Member State") will be made pursuant the final terms and the base prospectus prepared by Continental AG or pursuant to an exemption under the Prospectus Directive, as implemented in that Relevant Member State, from the requirement to publish a prospectus for offers of Notes. Accordingly any person making or intending to make any offer in that Relevant Member State of Notes which are the subject of the placement contemplated in this announcement may only do so in circumstances in which no obligation arises for Continental or any other person to publish a prospectus pursuant to Article 3 of the Prospectus Directive (other than the final terms and the base prospectus prepared by Continental AG) or supplement a prospectus pursuant to Article 16 of the Prospectus Directive, in each case, in relation to such offer. Continental has not authorized, nor does it authorize, the making of any offer of Notes in circumstances in which an obligation arises for Continental or any other person to publish or supplement a prospectus (other than the final terms and the base prospectus prepared by Continental AG) for such offer.
This announcement is directed at and/or for distribution in the United Kingdom only to (i) persons who have professional experience in matters relating to investments falling within article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the "Order") or (ii) high net worth entities falling within article 49(2) (a) to (d) of the Order (all such persons are referred to herein as "relevant persons"). This announcement is directed only at relevant persons. Any person who is not a relevant person should not act or rely on this announcement or any of its contents. Any investment or investment activity to which this announcement relates is available only to relevant persons and will be engaged in only with relevant persons.
- Seven-year bond issue of at least €500 million planned
- Proceeds to be used for early refinancing of one of the bonds issued in October 2010
- Eight-year Eurobond that has been issued in October 2010 to be redeemed early
Continental, the international automotive supplier, tire manufacturer and industrial partner, 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 of this latest step to further improve the maturity profile of financial liabilities. 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. The joint bookrunners for the transaction are Bank of America, Merill Lynch, Commerzbank AG, Credit Agricole CIB, DZ Bank AG, Mediobanca and The Royal Bank of Scotland. The bond is to be issued in denominations of €1,000 and listed on the regulated market of the Luxembourg Stock Exchange.
In addition, Continental has called today the Eurobond (ISIN DE000A1A1P25) issued in October 2010 by Conti-Gummi Finance B.V. with a coupon of 7.125% and a nominal volume of €625 million for early redemption. This bond will be redeemed early on November 8, 2013, five years before its original maturity. The redemption price is 103.563%. The corresponding call notice has been sent today to the joint representative and the clearing system for notification to the bondholders.
Continental set up a debt issuance program with a total volume of €5 billion in May of this year. This enables Continental to respond even more flexibly to market developments and to place short, medium, and long-term bonds on the capital market quickly. Continental already issued a five-year Eurobond with a nominal volume of €750 million and a coupon of 3% under this program in July.
NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES OF AMERICA, AUSTRALIA, CANADA OR JAPAN.
This announcement does not contain or constitute an offer of, or the solicitation of an offer to buy or subscribe for, securities to any person in Australia, Canada, Japan, or the United States of America (the "United States") or in any jurisdiction to whom or in which such offer or solicitation is unlawful. The securities referred to herein have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the "Securities Act") or the laws of any state within the U.S., and may not be offered or sold in the United States except in a transaction not subject to, or pursuant to an applicable exemption from, the registration requirements of the Securities Act or any state securities laws. This announcement and the information contained herein may not be distributed or sent into the United States, or in any other jurisdiction in which offers or sales of the securities described herein would be prohibited by applicable laws and should not be distributed to publications with a general circulation in the United States.
The Notes are being offered and sold outside the United States only in reliance on Regulation S under the Securities Act. Subject to certain exceptions, the securities referred to herein may not be offered or sold in Australia, Canada or Japan or to, or for the account or benefit of, any national, resident or citizen of Australia, Canada or Japan. The offer and sale of the securities referred to herein has not been and will not be registered under the Securities Act or the laws of any state within the U.S. or under the applicable securities laws of Australia, Canada or Japan. There will be no public offer of the Notes in any such jurisdiction.
This document has been prepared on the basis that any offer of Notes in any Member State of the European Economic Area ("EEA") which has implemented the Prospectus Directive (2003/71/EC), as amended (each, a "Relevant Member State") will be made pursuant the final terms and the base prospectus prepared by Continental AG or pursuant to an exemption under the Prospectus Directive, as implemented in that Relevant Member State, from the requirement to publish a prospectus for offers of Notes. Accordingly any person making or intending to make any offer in that Relevant Member State of Notes which are the subject of the placement contemplated in this announcement may only do so in circumstances in which no obligation arises for Continental or any other person to publish a prospectus pursuant to Article 3 of the Prospectus Directive (other than the final terms and the base prospectus prepared by Continental AG) or supplement a prospectus pursuant to Article 16 of the Prospectus Directive, in each case, in relation to such offer. Continental has not authorized, nor does it authorize, the making of any offer of Notes in circumstances in which an obligation arises for Continental or any other person to publish or supplement a prospectus (other than the final terms and the base prospectus prepared by Continental AG) for such offer.
This announcement is directed at and/or for distribution in the United Kingdom only to (i) persons who have professional experience in matters relating to investments falling within article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the "Order") or (ii) high net worth entities falling within article 49(2) (a) to (d) of the Order (all such persons are referred to herein as "relevant persons"). This announcement is directed only at relevant persons. Any person who is not a relevant person should not act or rely on this announcement or any of its contents. Any investment or investment activity to which this announcement relates is available only to relevant persons and will be engaged in only with relevant persons.
