.
- Total volume of €1.25 billion split into two tranches of €625 million each
- Tranches mature in 2016 and 2018
- Coupon of 6.5% per year (2016) and 7.125% per year (2018)
- Maturity profile of the financial liabilities forms sound basis for the future
For the third time in the past twelve weeks, Continental has now successfully placed euro-denominated bonds with qualified investors in Germany and abroad. The issue has an aggregate principal amount of €1.25 billion after its two predeces-sors had volumes of €750 million and EUR 1 billion, respectively. The issue consists of two tranches of €625 million each which mature in 2016 and 2018, respectively. The bonds will be issued by Conti-Gummi Finance B.V. and guaranteed by Continental AG and certain of its subsidiaries. The coupon is 6.5% per year for the tranche maturing in 2016 and 7.125% per year for the tranche maturing in 2018. Interest will be payable semi-annually in arrears, the company announced in Hanover on Tuesday.
"We took advantage of the strong demand for our bonds and the positive market environment to achieve our goal of an improved maturity profile quickly, efficiently, and reliably. At the same time, we have offered investors an attractive investment", explained Continental CFO Wolfgang Schäfer. "As with the first two bonds placed in July and September, we will use the net proceeds of this bond issue for the partial, early repayment of our bank liabilities, leaving us well positioned for the future." Schäfer confirmed that there are no further bond issues planned in 2010.
The bonds will be listed on the Open Market (Freiverkehr) of the Frankfurt Stock Exchange as well as the Hamburg and Hanover stock exchanges and will be issued on October 5, 2010. The international automotive supplier has mandated a bank consortium led by Citi and Royal Bank of Scotland to place the bonds.
The bank consortium also includes Commerzbank, Goldman Sachs, ING, Landesbank Ba-den-Württemberg and UniCredit Bank as bookrunners. In the next few days, Continental will publish some key data about the bonds on its website.
Media database on the Internet: www.mediacenter.continental-corporation.com
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 may not be offered or sold in the United States absent registration under the U.S. Securities Act of 1933, as amended (the "Securities Act") or another exemption from, or in a transaction not subject to, the registration requirements of 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 under the applicable securities laws of Australia, Canada or Japan. There will be no public offer of the securities in any jurisdiction.
This document was prepared on the basis that an offer of bearer bonds in a member state of the European Economic Area (EEA) that has implemented the prospectus directive (2003/71/EC) (in each case, a "relevant member state") may only take place in accordance with a clause, in the prospectus directive as implemented in the relevant member state, exempting from the need to publish a prospectus for the offer. Accordingly, persons who make an offer of bearer bonds to which this press release relates in a relevant member state or who intend to make such an offer may only do so under circumstances in which Continental is not obliged to publish a prospectus as per Article 3 of the prospectus directive or a prospectus addendum as per Article 16 of the prospectus directive in relation to the offer. Continental has not approved any offer of bearer bonds under circumstances in which Continental is obliged to publish a prospectus or prospectus addendum.
- Total volume of €1.25 billion split into two tranches of €625 million each
- Tranches mature in 2016 and 2018
- Coupon of 6.5% per year (2016) and 7.125% per year (2018)
- Maturity profile of the financial liabilities forms sound basis for the future
For the third time in the past twelve weeks, Continental has now successfully placed euro-denominated bonds with qualified investors in Germany and abroad. The issue has an aggregate principal amount of €1.25 billion after its two predeces-sors had volumes of €750 million and EUR 1 billion, respectively. The issue consists of two tranches of €625 million each which mature in 2016 and 2018, respectively. The bonds will be issued by Conti-Gummi Finance B.V. and guaranteed by Continental AG and certain of its subsidiaries. The coupon is 6.5% per year for the tranche maturing in 2016 and 7.125% per year for the tranche maturing in 2018. Interest will be payable semi-annually in arrears, the company announced in Hanover on Tuesday.
"We took advantage of the strong demand for our bonds and the positive market environment to achieve our goal of an improved maturity profile quickly, efficiently, and reliably. At the same time, we have offered investors an attractive investment", explained Continental CFO Wolfgang Schäfer. "As with the first two bonds placed in July and September, we will use the net proceeds of this bond issue for the partial, early repayment of our bank liabilities, leaving us well positioned for the future." Schäfer confirmed that there are no further bond issues planned in 2010.
The bonds will be listed on the Open Market (Freiverkehr) of the Frankfurt Stock Exchange as well as the Hamburg and Hanover stock exchanges and will be issued on October 5, 2010. The international automotive supplier has mandated a bank consortium led by Citi and Royal Bank of Scotland to place the bonds.
The bank consortium also includes Commerzbank, Goldman Sachs, ING, Landesbank Ba-den-Württemberg and UniCredit Bank as bookrunners. In the next few days, Continental will publish some key data about the bonds on its website.
Media database on the Internet: www.mediacenter.continental-corporation.com
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 may not be offered or sold in the United States absent registration under the U.S. Securities Act of 1933, as amended (the "Securities Act") or another exemption from, or in a transaction not subject to, the registration requirements of 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 under the applicable securities laws of Australia, Canada or Japan. There will be no public offer of the securities in any jurisdiction.
This document was prepared on the basis that an offer of bearer bonds in a member state of the European Economic Area (EEA) that has implemented the prospectus directive (2003/71/EC) (in each case, a "relevant member state") may only take place in accordance with a clause, in the prospectus directive as implemented in the relevant member state, exempting from the need to publish a prospectus for the offer. Accordingly, persons who make an offer of bearer bonds to which this press release relates in a relevant member state or who intend to make such an offer may only do so under circumstances in which Continental is not obliged to publish a prospectus as per Article 3 of the prospectus directive or a prospectus addendum as per Article 16 of the prospectus directive in relation to the offer. Continental has not approved any offer of bearer bonds under circumstances in which Continental is obliged to publish a prospectus or prospectus addendum.
