DGAP-News

KION Group successfully issues promissory notes (Schuldschein) with a volume of around EUR1 billion

DGAP-News: KION GROUP AG / Key word(s): Financing KION Group successfully issues promissory notes (Schuldschein) with a volume of around EUR1 billion (news with additional features) 21.02.2017 / 08:59 The issuer is solely responsible for the content of this announcement. Proceeds of EUR958 million for refinancing the Dematic acquisition Maturity periods of five, seven, and ten years; fixed and floating-rate coupons CFO Toepfer: "We have made full use of the favorable interest rate environment and significantly improved the maturity profile of our financing" Wiesbaden, February 21, 2017 - The KION Group has successfully issued its first promissory notes. The proceeds of around EUR1 billion are used for the refinancing of the bridge loan that the Company had obtained from its core group of banks for the acquisition of Dematic, a specialist in automation and supply chain optimization. The promissory notes, which have a volume of EUR958 million, are divided into tranches with maturities of five, seven, and ten years with fixed and floating-rate coupons. "By issuing the promissory notes very soon after the acquisition of Dematic, we have made full use of the favorable interest rate environment in order to refinance a substantial part of the acquisition financing," said the KION Group's Chief Financial Officer, Thomas Toepfer. "By issuing the promissory notes in an attractive market environment and thereby also significantly extending the maturity profile of KION's financing, the KION Group again demonstrates its conservative financing policy." The KION Group initially financed the purchase of Dematic with a bridge loan of EUR3 billion. This was then reduced by the gross proceeds of approximately EUR459 million from a capital increase in July 2016. The acquisition of Dematic has made the KION Group a leading global provider of supply chain solutions with a unique and comprehensive portfolio of products ranging from forklift trucks to fully automated material handling systems. The Group is therefore ideally positioned to benefit from the attractive and profitable growth that is being driven by megatrends such as Industry 4.0, digitalization, and e-commerce.