04/24/2015
Medium-term financing secured at attractive conditions
- Syndicated loan of over 500 million Euro concluded with a term running to 2018
- Significant over-subscription on the requested volume
- Financing security being a further important step in the continued restructuring of the Group into a leading rail infrastructure company
The Vossloh Group has secured its medium-term Group financing with the successful closing of a syndicated loan of over €500 million. The structured facility has a term of three years starting April 23, 2015, and thus provides a stable medium-term financing basis. €200 million are available to the Group in the form of a term loan and €300 million in the form of a revolving credit line, i.e. a flexible, available line of credit. The syndicated load will replace the Group's bridging loan of €250 million, which had been borrowed in June 2014 to repay the US Private Placement and is timed to end in June 2015. At the same time, Vossloh AG’s current bilateral credit facilities will be refinanced.
"The refinancing marks a significant milestone for the transformation of the Group into a worldwide leading rail infrastructure company. We have reached both, medium-term financing security as well a maximum of flexibility. At the same time, we have improved our interest terms. The trust of our banking partners underlines that we are on the right path with our new strategy", says Oliver Schuster, Vossloh's Chief Financial Officer.
As a result of its strategic realignment, the Vossloh Group is focused on growth in attractive rail infrastructure markets. Since January 1, 2015, this business is represented in the three new divisions of Core Components, Customized Modules and Lifecycle Solutions. The goal is to become one of the top two leading providers in the product areas and regional markets essential to Vossloh, while also further maintaining and strengthening current market positions. The Group's fourth division, which includes all activities related to rolling stock, is no longer part of the core business and is to be sold or transferred to a more fitting structure by 2017. Vossloh wants to improve the Group's profitability gradually between 2015 and 2017. On the basis of the current Group portfolio, the target return for 2017 is an EBIT margin of 5 to 6 percent.
The syndicated loan agreed to in April 2015 was provided by a banking syndicate comprising 11 participants in total. The mandated lead arrangers and book runner are: Bayerische Landesbank, Commerzbank Aktiengesellschaft, Landesbank Baden-Württemberg and SEB AG.
Werdohl April 24, 2015
Contact information for media:Lucia Mathée, MATHEE GmbH
Phone: (+49-23 92) 52-608
Email:
presse@ag.vossloh.com Contact information for investors:Lucia Mathée, MATHEE GmbH
Phone: (+49-23 92) 52-609
Email:
investor.relations@ag.vossloh.com Vossloh is a global player in the rail technology markets. The core business is rail infrastructure. In addition, the Group is active in the areas of rolling stock and electric buses. Under the umbrella of Vossloh AG and since January 1, 2015, these activities have been allocated to the four divisions Core Components, Customized Modules, Lifecycle Solutions and Transportation. In financial year 2014, Vossloh generated sales of €1.32 billion with more than 5,700 employees.