Heidelberg overhauls financing to cut borrowing costs

2015-insCompany partially redeems high-yield bond gaining greater room for manoeuvre in future
Germany: Heidelberger Druckmaschinen AG (Heidelberg) is improving its financing structure, the company announced on 14 March.
The print giant said it has decided to redeem a further sum of around EUR64.5m from a high-yield bond (with a coupon of 9.25%), which runs to 2018 and currently totals about EUR115m.
Issued in 2011 with an original volume of some EUR300m, 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 EUR6m will have a positive impact on the financial result, said Heidelberg.
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 optimising our financing framework step by step,” said 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.”
The early redemption will take place by means of a public announcement with effect from 15 April with a redemption value of about 102.3%.

Comments are closed