ElringKlinger agrees syndicated loan of EUR 350 million
- Volume of EUR 350 million over minimum term of five years
- Syndicate of six domestic and international banks led by Commerzbank, Landesbank Baden-Württemberg, and Deutsche Bank
- Proceeds directed at general corporate funding and refinancing of existing bilateral lines of credit
- Improvement of maturity profile and more solid foundation for corporate planning
Dettingen/Erms (Germany), February 15, 2019 +++ ElringKlinger AG has today concluded a syndicated loan agreement with a syndicate consisting of six domestic and international banks. Funding was jointly arranged by Commerzbank, Landesbank Baden-Württemberg, and Deutsche Bank; the syndicate also includes DZ Bank, HSBC, and Banque Européenne du Crédit Mutuel. The agreement covers a total volume of EUR 350 million over a minimum term of five years. The proceeds from the loan are to be used for the purpose of general corporate funding and the refinancing of existing bilateral lines of credit.
"The syndicated loan allows us to further improve the overall maturity profile of our financial liabilities," explains Thomas Jessulat, CFO at ElringKlinger AG. "This agreement is part of a program aimed at also positioning ourselves appropriately on the financing side in order to be able to actively shape the process of transformation within the automotive industry." In taking this step, the Group has optimized its financing structure and created a more solid foundation for corporate planning. In line with the improvement in earnings performance expected in the medium term as well as measures planned with regard to working capital and a continued disciplined approach to investment activities, the focus will be on significantly improving operating free cash flow.
Embracing a comprehensive technology strategy, ElringKlinger was an early mover in positioning itself for the transition toward alternative drive systems. In the field of battery technology, for instance, the Group has already been operating as a series supplier of cell contact systems for hybrid and all-electric vehicles since 2011. The company also provides high-performance fuel cell stacks for hydrogen-powered drive systems. Additionally, through its strategic investment in development specialist hofer, the Group is capable of equipping all-electric vehicles with a complete electric drive unit. Numerous serial production orders and development projects in these strategic fields of the future point to the prospect of strong revenue growth in the coming years. In going forward, the Group will manage growth in its classical areas of business in order to unlock the potential associated with next-generation technologies.
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For further information please contact:
Dr. Jens Winter
Phone +49 7123 724-88335
Fax +49 7123 724-85 8335