Ad-hoc | 19 December 2009 01:43
Continental AG / Contract
19.12.2009
Dissemination of an Ad hoc announcement according to § 15 WpHG, transmitted by
DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
---------------------------------------------------------------------------
Continental and its lending banks have amended the Facility Agreement on
the syndicated loans Continental took up for financing the acquisition of
Siemens VDO. With regard to the financial covenants agreed therein, the
amendment provides for a ratio of financial indebtedness and EBITDA on the
one hand and EBITDA to net interest on the other hand which is, in each
case, more favourable to Continental than in the existing Facility
Agreement. In turn, Continental has committed to pay, in particular, a
higher margin as well as to provide certain security. In addition, the
parties have agreed on amendments of the Facility Agreement which are
market standard in order to reflect the recent changes in the rating of
Continental.
At the same time a majority of the banking syndicate has committed, via a
so-called Forwart Start Facility, to provide Continental with funds of up
to Euro 2.5 bn for settlement of the Euro 3.5 bn tranch maturing in August
2010 under the terms of the Facility Agreement. The amount actually drawn
by Continental under the Forward Start Facility will mature, simultaneously
with the remaining tranches of the Facility Agreement, in August 2012. The
Forward Start Facility will only come into effect if Continental has raised
gross proceeds of at least Euro 1 bn by a share capital increase. Other
terms and conditions of the Forward Start Facility correspond to the terms
and conditions of the Facility Agreement as now amended.
19.12.2009 Ad hoc announcement, Financial News and Media Release distributed by DGAP.
Media archive at www.dgap-medientreff.de and www.dgap.de
---------------------------------------------------------------------------
Language: English
Company: Continental AG
Vahrenwalder Straße 9
30165 Hannover
Deutschland
Phone: +49 (0)511 938-1068
Fax: +49 (0)511 938-1080
E-mail: ir@conti.de
Internet: www.conti.de
ISIN: DE0005439004
WKN: 543900
Indices: MDAX
Listed: Regulierter Markt in Frankfurt (Prime Standard), Hannover,
Stuttgart, Hamburg; Freiverkehr in Berlin, Düsseldorf,
München; Terminbörse EUREX; Foreign Exchange(s) Luxembourg,
SWX
End of News DGAP News-Service
---------------------------------------------------------------------------