Hella strengthens financial flexibility with the issuance of a first corporate bond
Article of 14.10.2009
Lippstadt, October 14, 2009. Hella KGaA Hueck & Co., a leading supplier to the automobile industry and one of the largest distributors of automotive parts and accessories for the aftermarket, has issued a bond with a nominal volume of 300 million euros and a term of five years. The bond carries an interest coupon of 7.25 percent. The bond attracted strong demand and was four times oversubscribed. Hella sees this as a sign of the market's high confidence in the company despite the difficult outlook for the automotive sector.
For Hella, this is a new capital market instrument. "For us, this bond financing is a further step to secure the company's independence and strengthen our financial flexibility," Dr. Jürgen Behrend, Chairman and President of the company, commented. The proceeds will be used largely to refinance bank loans and to increase the company's liquidity position. The transaction was managed by Deutsche Bank and Royal Bank of Scotland.
|
He_Pr_e_141009.rtf