.
- Total volume of USD 950 million
- Proceeds to be used for early repayment of part of bank loans
- Term of 7 years, coupon of 4.5 percent
Within two days, the international automotive supplier Continental placed US dollar-denominated bonds in an aggregate principal amount of USD 950 million with qualified institutional investors in Germany and abroad. The bonds have a term of seven years. They will be issued by Continental Rubber of America, Corp., USA, and guaranteed by Continental AG and selected subsidiaries. The annual interest rate will be 4.5 percent and is substantially lower than the interest rate on the bonds issued by Continental in 2010. Interest will be payable semiannually in arrears.
"The significant oversubscription is another important sign of confidence in our performance," explained Continental CFO Wolfgang Schäfer. "With this step, we have taken advantage of the current positive capital market environment to cover our additional investments in the US through the debt capital market," Schäfer added. The proceeds will be used for early repayment of part of the term loan tranche of the outstanding syndicated loan that is scheduled to mature in April 2014. With that early step the company improves the maturity profile of its financial liabilities.
The bonds are expected to be traded on the open markets (Freiverkehr) of the Frankfurt Stock Exchange and the stock exchanges in Hamburg and Hanover and will be issued on September 24, 2012. BofA Merrill Lynch, Credit Agricole CIB, Deutsche Bank, HSBC, J.P. Morgan and RBS act as bookrunners for the offering.
Media database: www.mediacenter.continental-corporation.com
Financial reports: www.continental-ir.de
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 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 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 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 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.
NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES OF AMERICA, AUSTRALIA, CANADA OR JAPAN.
- Total volume of USD 950 million
- Proceeds to be used for early repayment of part of bank loans
- Term of 7 years, coupon of 4.5 percent
Within two days, the international automotive supplier Continental placed US dollar-denominated bonds in an aggregate principal amount of USD 950 million with qualified institutional investors in Germany and abroad. The bonds have a term of seven years. They will be issued by Continental Rubber of America, Corp., USA, and guaranteed by Continental AG and selected subsidiaries. The annual interest rate will be 4.5 percent and is substantially lower than the interest rate on the bonds issued by Continental in 2010. Interest will be payable semiannually in arrears.
"The significant oversubscription is another important sign of confidence in our performance," explained Continental CFO Wolfgang Schäfer. "With this step, we have taken advantage of the current positive capital market environment to cover our additional investments in the US through the debt capital market," Schäfer added. The proceeds will be used for early repayment of part of the term loan tranche of the outstanding syndicated loan that is scheduled to mature in April 2014. With that early step the company improves the maturity profile of its financial liabilities.
The bonds are expected to be traded on the open markets (Freiverkehr) of the Frankfurt Stock Exchange and the stock exchanges in Hamburg and Hanover and will be issued on September 24, 2012. BofA Merrill Lynch, Credit Agricole CIB, Deutsche Bank, HSBC, J.P. Morgan and RBS act as bookrunners for the offering.
Media database: www.mediacenter.continental-corporation.com
Financial reports: www.continental-ir.de
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 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 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 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 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.
NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES OF AMERICA, AUSTRALIA, CANADA OR JAPAN.
