New Group financing
KUKA Aktiengesellschaft ("KUKA AG") has reached an agreement with a consortium of banks on the conclusion of a new Syndicated Senior Facilities Agreement (“SFA”) that will prematurely repay the previous SFA with a total volume of EUR 336 million.
November 8, 2010
The new SFA has a total volume of EUR 200 million and has a term ending March 31, 2014. The total volume is broken down into guarantee facilities totaling EUR 150 million and EUR 50 million in revolving cash facilities. From KUKA Group's perspective, the new SFA has better conditions than the previous SFA and provides greater flexibility.
A further component of the new Group financing and a condition precedent for the new SFA is KUKA AG's successful placement of a High Yield Bond. This High Yield Bond is to have a total volume of EUR 200 million with a planned seven year term. Actions to market the High Yield Bond will begin today. The High Yield Bond shall be listed and traded at the Luxembourg Stock Exchange, segment Euro MTF.
The issue price and the interest coupon will be determined after the marketing phase is completed. The proceeds from the High Yield Bond will be used for the refinancing of the convertible bond, partial repayment of the cash credit line from the previous SFA and investments in the development of business operations.
KUKA AG's Supervisory Board approved the new Group financing on November 8, 2010; however, they have reserved the right to give the final approval depending on the success of marketing and particularly the final pricing. Whether the new financing actually takes effect is therefore dependent on the successful placement of the High Yield Bond.
Augsburg, November 8, 2010
The Executive Board