- IHO Holding, a group of holding companies indirectly owned by Schaeffler, completed a €4.4 billion refinancing, which included the largest payment-in-kind (PIK) note issue ever.
- In addition to issuing the record €3.6 billion PIK toggle bond, Schaeffler signed a new €800 million syndicated loan agreement with four banks.
- The bond, which refinances Schaeffler's outstanding €1.7 billion bonds, was issued in six tranches - three euro, three US dollar - and listed on the Luxembourg Stock Exchange.
- The euro tranches, which each have a value of €750, are 2.75% five year notes, 3.25% seven year notes, and 3.75% 10 year notes.
- The US dollar tranches, which each have a value of €500 million, are 4.125% five year notes, 4.5% seven year notes, and 4.75% 10 year notes.
- The new €800 million loan agreement comprises a €600 million terms loan and €200 million revolving credit facility which mature in September 2021.
- Deutsche Bank, Citigroup Global Markets, Bank of America Merrill Lynch, HSBC Trinkaus and Burkhardt were arrangers on the bonds and provided the loan.
Ben Naylor - Regional Editor