Financing extended
KUKA Aktiengesellschaft (“KUKA AG”) has reached an agreement with a bank consortium on extending and increasing the existing Syndicated Senior Facilities. In addition, KUKA AG's Supervisory Board has asked Dr. Till Reuter to continue in his position of acting CEO in accordance with section 105, para. 2 of the German Stock Corporation Act, until September 2010.
10 March 2010
KUKA Aktiengesellschaft (“KUKA AG”) has reached an agreement with a bank consortium on extending and increasing the existing Syndicated Senior Facilities According to the agreement, the banks will provide KUKA with credit facilities totaling EUR 336 million until March 31, 2012. This amount consists of revolving cash facilities in the amount of EUR 146 million and credit facilities for letters of credit in the amount of EUR 190 million. The Kreditanstalt für Wiederaufbau (KfW) joined the consortium as a new partner and will contribute EUR 31 million to the cash facility.
As part of the agreement with the banking consortium KUKA AG agreed to raise equity by at least EUR 23 million by the end of June 2010, either by the way of a capital increase or subordinated debt. The agreed credit lines will only become available in full in the future upon the raising of the afore-mentioned funds. KUKA AG will decide whether to raise more than EUR 23 million subject to market conditions. The major shareholder Grenzebach Maschinenbau GmbH has committed to provide up to EUR 15 million as part of the capital injection. Grenzebach Maschinenbau GmbH has also informed KUKA AG that in line with its previous communication it will not increase its shareholding in the company, or the shareholding attributable to it, to 30 percent or more in the course of a capital increase.
The extension of the bank financing beyond August 31, 2011 is also conditional upon securing a refinancing of the convertible bond issued by KUKA Finance BV and guaranteed by KUKA AG, which falls due in November 2011, by no later than August 31, 2011. The company further undertook vis-à-vis the banking consortium not to distribute any dividends to its shareholders during the term of the financing agreement. The amended terms of the bank financing will lead to higher financing costs and an increased negative financial result in comparison to 2009.
In addition, KUKA AG's Supervisory Board has asked Dr. Till Reuter to continue in his position of acting CEO in accordance with section 105, para. 2 of the German Stock Corporation Act, until September 2010. After successfully completing the financing negotiations, Dr. Reuter informed the Supervisory Board that he would remain in the position until such date, in particular to further develop the company's long-term strategic direction. Accordingly, the staffing of the CEO-position from October 2010 onwards will be appointed later.
KUKA AG will release its final results for 2009 on March 16, 2010.
Augsburg, March 10, 2010
KUKA Aktiengesellschaft
The Executive Board
As part of the agreement with the banking consortium KUKA AG agreed to raise equity by at least EUR 23 million by the end of June 2010, either by the way of a capital increase or subordinated debt. The agreed credit lines will only become available in full in the future upon the raising of the afore-mentioned funds. KUKA AG will decide whether to raise more than EUR 23 million subject to market conditions. The major shareholder Grenzebach Maschinenbau GmbH has committed to provide up to EUR 15 million as part of the capital injection. Grenzebach Maschinenbau GmbH has also informed KUKA AG that in line with its previous communication it will not increase its shareholding in the company, or the shareholding attributable to it, to 30 percent or more in the course of a capital increase.
The extension of the bank financing beyond August 31, 2011 is also conditional upon securing a refinancing of the convertible bond issued by KUKA Finance BV and guaranteed by KUKA AG, which falls due in November 2011, by no later than August 31, 2011. The company further undertook vis-à-vis the banking consortium not to distribute any dividends to its shareholders during the term of the financing agreement. The amended terms of the bank financing will lead to higher financing costs and an increased negative financial result in comparison to 2009.
In addition, KUKA AG's Supervisory Board has asked Dr. Till Reuter to continue in his position of acting CEO in accordance with section 105, para. 2 of the German Stock Corporation Act, until September 2010. After successfully completing the financing negotiations, Dr. Reuter informed the Supervisory Board that he would remain in the position until such date, in particular to further develop the company's long-term strategic direction. Accordingly, the staffing of the CEO-position from October 2010 onwards will be appointed later.
KUKA AG will release its final results for 2009 on March 16, 2010.
Augsburg, March 10, 2010
KUKA Aktiengesellschaft
The Executive Board