Corporate | 9 July 2013 18:11
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KION GROUP AG / Key word(s): Capital Reorganisation
KION GROUP AG optimizes financing structure after its successful IPO – The bank term debt under the Senior Facilities Agreement of EUR1,080 million has been repaid in full – Notice has been given to repay EUR175 million Senior Secured Floating Rate Notes due 2018 in full – New Revolving Credit Facility for EUR995 million due in 2018 – CFO Thomas Toepfer: ‘Driving forward successful global expansion’ Wiesbaden, 9 July 2013 – Following it successful IPO KION GROUP AG further improves its financing structure, forming the basis to drive forward its global expansion. The Company uses EUR1,080 million to repay in full its bank term debt under the amended Senior Facilities Agreement. The repayment is funded with a combination of proceeds from the IPO, the capital increase subscribed by Weichai Power Co. Ltd. in the context of the IPO, as well as available cash and drawings under a new Revolving Credit Facility. Based on its significantly improved credit profile, KION Group is now able to utilize a new Revolving Credit Facility (RCF) for EUR995 million. This RCF has a maturity until 2018 and is being provided by a group of relationship banks of KION Group. Under the RCF approximately EUR175 million will be drawn in order to repay the outstanding aggregate principal amount of the Senior Secured Floating Rate Notes due 2018 in full. The Notes will be redeemed at a redemption price of 100% of the principal amount thereof, plus accrued and unpaid interest on the Notes to the redemption date. As a result of this repayment, the conversion of a shareholder loan in the course of the IPO and the repayment of the bank term debt under the Senior Facilities Agreement, the remaining term debt outstanding for the Company consists of Senior Secured Notes for EUR325 million maturing in 2018 and Senior Secured Notes for EUR650 million maturing in 2020. Following these repayments the Company does not intend to make further debt repayments for the time being from the proceeds of the IPO. The maturities of KION Group’s debt are 2018 and beyond. Thomas Toepfer, CFO of KION GROUP AG, emphasized: ‘With these steps, KION GROUP AG further optimizes its financing structure. This new and very solid capital structure forms the basis for driving forward our successful global expansion.’ The improved capital structure is reflected in the Company’s credit ratings. On 2 July 2013, Moody’s Investor Services assigned a corporate family rating (CFR) of Ba3 to KION GROUP AG. The three-notch upgrade of KION’s CFR reflects ‘the significant improvement’ in KION’s group net leverage. On 5 July 2013, Standard & Poor’s increased their CFR for the Company to BB- with a positive outlook. In the course of the IPO, three capital increases totalling EUR860 million were carried out. Trading in shares on the regulated market (Prime Standard) of the Frankfurt Stock Exchange commenced on 28 June 2013.
About KION Group
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This release contains forward-looking statements that are subject to various risks and uncertainties. Future results could differ materially from those described in these forward-looking statements due to certain factors, e.g. changes in business, economic and competitive conditions, regulatory reforms, results of technical studies, foreign exchange rate fluctuations, uncertainties in litigation or investigative proceedings, and the availability of financing. We do not undertake any responsibility to update the forward-looking statements in this release.
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End of Corporate News +++++ Additional features: Document: http://n.equitystory.com/c/fncls.ssp?u=PGMWPAEREU Document title: KION GROUP AG optimizes financing structure 09.07.2013 Dissemination of a Corporate News, transmitted by DGAP – a company of EQS Group AG. The issuer is solely responsible for the content of this announcement. DGAP’s Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de |
| Language: | English | |
| Company: | KION GROUP AG | |
| Abraham-Lincoln-Str. 21 | ||
| 65189 Wiesbaden | ||
| Germany | ||
| Phone: | +49 (0)611 770-0 | |
| Fax: | +49 (0)611 770-690 | |
| E-mail: | info@kiongroup.com | |
| Internet: | www.kiongroup.com | |
| ISIN: | DE000KGX8881 | |
| WKN: | KGX888 | |
| Listed: | Regulierter Markt in Frankfurt (Prime Standard) | |
| End of News | DGAP News-Service |
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| 220507 09.07.2013 |