Conti Eurobond worth €750M
Continental reports its latest Eurobond has a nominal amount of €750 million; it is expected to be issued on 16 July and has a term of five years, with a 3.0 per cent annual interest rate. Interest will be payable semi-annually in arrears. The issue price is 98.95 per cent. The bond will be listed on the Luxembourg Stock Exchange’s Regulated Market and BNP Paribas, Citi, Deutsche Bank, ING and UniCredit will as joint-bookrunners for the transaction.
“We managed to use the positive capital market environment to reduce our interest costs and further improve our debt maturity profile at the same time. The significant oversubscription again is a sign of confidence by the investors,” explained chief financial officer Wolfgang Schäfer.
The proceeds of this latest transaction will be used for the partial early refinancing of the bond Continental issued in September 2010. As stated on 8 July, Continental is calling the early redemption of the 7.5 per cent Eurobond that its Conti-Gummi Finance B.V. subsidiary issued just under three years ago. The bond will be terminated early and is expected to be due for repayment on 16 September 2013, four years ahead of the original maturity date. The agreed redemption price is 103.75 per cent.