1.25 Billion Conti Eurobond Placed
It’s a done deal – earlier this morning tyrepress.com reported Continental’s intention of placing a third euro-denominated bond. The German company has now reported the successful placement of this third bond, as issue with an aggregate principal amount of 1.25 billion euros. The issue consists of two tranches of 625 million euros each, which respectively mature in 2016 and 2018. As per the company’s previous statement, 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 cent per year for the tranche maturing in 2016 and 7.125 per cent per year for the tranche maturing in 2018. Interest will be payable semi-annually in arrears.
“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 no further bond issues are planned in 2010.