KION GROUP AG optimizes financing structure after its successful IPO

2013-07-09


KION GROUP AG / Key word(s): Capital Reorganisation

09.07.2013 / 18:11


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
The KION Group - comprising the six brands Linde, STILL, Fenwick, OM STILL, Baoli and Voltas - is the largest manufacturer of industrial trucks in Western and Eastern Europe (in terms of unit sales in 2011), the global number two in the industry and the leading non-domestic supplier in China. The Linde and STILL brands serve the premium segment worldwide. Fenwick is the largest supplier of material handling products in France, while OM STILL is a market leader in Italy. The Baoli brand focuses on the economy segment, and Voltas is a market leader in India. The KION Group employed more than 21,000 people and generated revenue of EUR4.73 billion in 2012. KION Group is present in more than 100 countries and has a global market share of around 15 percent.

Disclaimer
This document and the information contained herein are for information purposes only and do not constitute a prospectus or an offer to sell or a solicitation of an offer to buy any securities in the United States or in any other jurisdiction.

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.

 

Further information for the media

Michael Hauger
Head of Corporate Communications
Tel.: +49 (0) 611.770-655
Email michael.hauger@kiongroup.com

Frank Brandmaier
Head of Corporate Media Relations
Tel.: +49 (0) 611.770-752
Email frank.brandmaier@kiongroup.com

Further information for investors

Frank Herzog
Head of Corporate Finance
Tel.: +49 (0) 611.770-303
Email frank.herzog@kiongroup.com

Silke Glitza
Head of Investor Relations
Tel.: +49 (0) 611.770-450
Email silke glitza@kiongroup.com



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Document title: KION GROUP AG optimizes financing structure


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