DGAP-News: KION Group successfully places EUR 500 million senior secured notes

2011-04-08

KION Group successfully places EUR 500 million senior secured notes

Wiesbaden, 8 April 2011- The KION Group, one of the two leading global manufacturers of forklift trucks and warehouse equipment, has successfully placed senior secured notes with a total principal value of EUR 500 million.

The bond issuance partially extends the company's debt maturity profile into 2018 and diversifies KION Group's investor base. Net proceeds will be used to refinance KION Group's existing first lien loan indebtedness. The senior secured notes will be issued by Luxembourg based KION Finance S.A. The transaction is expected to close on 15 April 2011. The transaction was led by Deutsche Bank with joint book-running managers BNP Paribas, Commerzbank, Goldman Sachs International, KKR, and UniCredit.

The senior secured notes due 2018 comprise a fixed rate tranche of EUR 325 million and a floating rate tranche of EUR 175 million. The fixed rate notes were issued at par with a coupon of 7.875%, the floating rate notes were issued at par and will pay a coupon of 3 month EURIBOR plus 4.25%.

DISCLAIMER

Neither this announcement, the publication in which it is contained nor any copy of it may be taken, transmitted or distributed, directly or indirectly, in or into the United States of America (including its territories or possessions, any state of the United States of America and the District of Columbia) ('the United States'). Neither this announcement, the publication in which it is contained nor any copy of it may be taken, transmitted or distributed, directly or indirectly, in or into Australia, Canada or Japan or to any persons in any of those jurisdictions or any other excluded territories. Any failure to comply with this restriction may constitute a violation of United States, Australian, Canadian or Japanese securities law. The distribution of this document in other jurisdictions may be restricted by law and persons into whose possession this document comes should inform themselves about, and observe, any such restrictions.

This announcement does not constitute or form part of any offer or invitation to sell, or any solicitation of any offer to purchase Notes or any other securities nor shall it (or any part of it) or the fact of its distribution, form the basis of, or be relied on in connection with, any contract therefore. The offering and the distribution of this announcement and other information in connection with the offering in certain jurisdictions may be restricted by law and persons into whose possession any document or other information referred to herein comes should inform themselves about, and observe, any such restrictions. Any failure to comply with these restrictions may constitute a violation of the securities laws of any such jurisdiction.

In particular, this announcement does not constitute an offer for sale of, or a solicitation to purchase or subscribe for, any securities in the United States, Australia, Canada, Japan, Hong Kong or in any jurisdiction to whom or in which such offer or solicitation is unlawful. No securities of the KION Group have been, or will be, registered under the US Securities Act of 1933, as amended (the 'Securities Act'), and securities of the KION Group may not be offered or sold in the United States absent registration or an applicable exemption from, or transaction not subject to, the registration requirements of the Securities Act. No securities of the KION Group have been, or will be, registered under the securities laws of Australia, Canada, Japan or Hong Kong. Subject to certain exceptions, no securities of the KION Group may be offered or sold in Australia, Canada, Japan or Hong Kong or to, or for the account or benefit of, any national, resident or citizen of Australia, Canada, Japan or Hong Kong. The KION Group does not intend to conduct a public offer of the Notes in the United States, Australia, Canada, or Japan or Hong Kong.

This announcement does not constitute a recommendation concerning the offering. Acquiring securities to which this announcement relates may expose an investor to a significant risk of losing all of the amount invested. The price and value of securities can go down as well as up. Past performance is not a guide to future performance. Information in this announcement or any of the documents relating to the Offer cannot be relied upon as a guide to future performance. Potential investors should consult a professional advisor as to the suitability of the Offer for the entity concerned.

Each of Deutsche Bank AG, London Branch ('Deutsche Bank'), BNP Paribas ('BNP'), Commerzbank Aktiengesellschaft ('Commerzbank'), Goldman Sachs International ('Goldman Sachs'), KKR Capital Markets Limited ('KCM') and UniCredit Bank AG ('UniCredit') is acting exclusively for the KION Group and no one else in connection with the offering and will not regard any other person as their client in relation to the offering and will not be responsible to anyone other than the KION Group for providing the protections afforded to their respective clients nor for giving advice in relation to the offering, the contents of this announcement or any transaction, arrangement or other matter referred to herein.

In connection with the offering, each of Deutsche Bank, BNP, Commerzbank, Goldman Sachs, KCM, UniCredit or any of their respective affiliates, acting as investors for their own accounts, may purchase Notes and in that capacity may retain, purchase, sell, offer to sell or otherwise deal for their own accounts in such Shares and other securities of the KION Group or related investments in connection with the offering or otherwise. Accordingly, references in the Offering Circular, once published, to the Notes being issued, offered, acquired, placed or otherwise dealt in should be read as including any issue or offer to, acquisition, placing or dealing by, Deutsche Bank, BNP, Commerzbank, Goldman Sachs, KCM, UniCredit or any of their respective affiliates acting as investors for their own accounts. Deutsche Bank, BNP, Commerzbank, Goldman Sachs, KCM and UniCredit do not intend to disclose the extent of any such investment or transactions otherwise than in accordance with any legal or regulatory obligations to do so. None of Deutsche Bank, BNP, Commerzbank, Goldman Sachs, KCM, UniCredit or any of their affiliates or any of their respective directors, officers, employees, advisers, agents or any other person accepts any responsibility or liability whatsoever for, or makes any representation or warranty, express or implied, as to the truth, accuracy, completeness or fairness of the information or opinions in this announcement.

Certain figures contained in this document, including financial information, have been subject to rounding adjustments.


The Company
The KION Group, with its Linde, STILL, Fenwick, OM and Baoli brands, is the market leader in industrial trucks in Europe, the global number two in the industry and the leading non-domestic supplier in China. In 2010, the KION Group generated revenue of more than EUR3.5 billion and employed around 20,000 people.

For further information please contact
Michael Hauger
Head of Communications and Investor Relations
Tel.: +49 (0)611.770-655
E-mail: michael.hauger@kiongroup.com

 

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Contact

Michael Hauger

Senior Vice President Corporate Communications

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Frank Grodzki

Senior Director Corporate External Communications & Group Newsroom

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