Schaeffler, banks set terms for €12 000 million financing

ERJ staff report (TB)

Herzogenaurah, Germany -- Schaeffler Group has reached terms with its five consortium banks on about euro 12 000 million in financing for the next four to six years, a key step in laying the foundation for the eventual combination of Schaeffler with Continental AG.

The plan will help Schaeffler - which owns 49 percent of Conti's shares directly and another 40-plus percent indirectly - transform itself into a capital market-oriented structure, the firm said.

The banks have agreed that existing credit facilities will be split into two tranches: a loan (a) serving the operating activities of Schaeffler Group and a loan (b) that remains at the holding level, Schaeffler said. Loan (a) has a lifetime of up to 4½ years and loan (b) will last up to 6 years.

The banks in question are: Commerzbank, UBS, Royal Bank of Scotland, Unicredit und Landesbank Baden-Württemberg (LBBW).

From Tire Business (A Crain publication)

Press release from Schaeffler