Heidelberg Partially Repays Bond With Cash on Hand; Creates Annual Interest Saving of €6 Million
HEIDELBERG, Germany — March 14, 2016 — Heidelberg is improving its financing structure. The company today decided to redeem a further sum of around €64.5 million from the high-yield bond (with a coupon of 9.25 percent), which runs to 2018 and has a current volume of around €115 million. The sum will be repaid on April 15, 2016. Issued in 2011 with an original volume of some €300 million, the bond was a key element in using long-term capital market instruments to diversify the company’s financing and has gradually been repaid since then. The latest repayment is being made from cash on hand and the annual interest saving of around €6 million will have a positive impact on the financial result. As well as investing in growth areas such as the digital and services sectors, the company is thus also in a position to further strengthen its financing structure. As part of the reorientation of Heidelberg, reducing the level of debt will create additional options for the company’s strategic further development.
"We are continuously working on optimizing our financing framework step by step," says CFO Dirk Kaliebe. "Thanks to the annual savings, we have succeeded in giving the company greater financial scope for making acquisitions and investing in growth and innovation," he adds.
In accordance with the bond conditions, the early redemption will take place by means of a public announcement with effect from April 15, 2016, with a redemption value, including redemption premium, of around 102.3 percent. The notice of redemption can also be viewed directly on the Luxembourg Stock Exchange’s website.