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Heidelberg Optimizes Financing Structure and Pays off KfW Loan Ahead of Schedule
Thursday 20. January 2011 - Further optimization of credit facility following EUR 420 million capital increase in September 2010
New simplified financing structure improves basis for future refinancing
Total financing reduced to just under EUR 900 million
At the end of 2010, Heidelberger Druckmaschinen AG (Heidelberg) repaid in full the loan from the Special Program of the KfW (Reconstruction Loan Corporation) for large companies
ahead of schedule. The KfW loan was reduced by just under EUR 190 million immediately after the capital increase last year, and now the remaining sum of around EUR 100 million has been repaid following some reallocation within the financing structure.
“We would like to thank the KfW for supporting us during the financial and economic crisis and helping us to bridge this difficult period. It was, however, always understood that we would revert to capital market financing as soon as possible. As announced, we therefore used all the net proceeds from the capital increase in September 2010 to reduce our financial liabilities. We then repaid the outstanding sum of approximately EUR 102 million due under the KfW loan ahead of schedule on December 30, 2010. This has simplified our financing structure and will also facilitate our future refinancing,” said Heidelberg CFO Dirk Kaliebe.
The proceeds from the capital increase and the positive free cash flow in the first half of the current financial year enabled Heidelberg to significantly lower its financial liabilities from some EUR 816 million at the end of March 2010 to around EUR 377 million by the end of September 2010.
The capital increase has given Heidelberg a more stable capital structure overall, with a much lower net debt of EUR 243 million and a solid equity basis of around EUR 830 million as at September 30, 2010. This has also resulted in a change to the Group’s financing requirements. Financing has fallen from the previous level of EUR 1.4 billion to just under EUR 900 million. It is now made up of the credit line supported by guarantee pledges from the State and the syndicated credit line from a consortium of banks. These two credit lines have each been reduced to around EUR 445 million.
In summer 2009, Heidelberg concluded a financing package for the period up to the middle of 2012. It comprised a loan for an original sum of EUR 300 million from the KfW, a loan originally totaling EUR 550 million, supported by guarantee pledges from the Federal Government and the States of Baden-Württemberg and Brandenburg, and an existing syndicated credit line from a consortium of banks, also for an original amount of EUR 550 million.