Schaeffler AG to Issue Another Bond

Schaeffler AG is issuing another senior secured bond in an amount of at least 200 million Euros. The bond will be issued in minimum denominations of 1,000 Euros and will be offered in a public offering to retail and institutional investors in Germany and Luxembourg and private placements in other countries in Europe. The bond will have a term of five years. The issue size and the terms will be finalised after completion of an investor roadshow.
The bond will be issued by Schaeffler Finance B.V. and will be guaranteed by Schaeffler AG and selected subsidiaries. Schaeffler has applied to admit the bond to trading on the regulated market of the Luxembourg Stock Exchange. Following the announcement of the final terms, it is intended that the bond will also be offered to employees of the Schaeffler Group in Germany.
The offering will be supported by Deutsche Bank, which is acting as global coordinator and managing bookrunner, and by Barclays, Bayerische Landesbank and Citi.
"With the issuance of a bond which is also being offered to private investors, we are tapping a new market segment. At the same time we are further optimizing our maturity profile", said the CFO of Schaeffler AG, Klaus Rosenfeld.
Domestic employees have the opportunity to subscribe the new bond during a separate, longer subscription period. Dr. Juergen M. Geissinger, CEO of Schaeffler AG, explained: "With this innovative offering, Schaeffler Group for the first time is providing its employees in Germany the opportunity to purchase a bond issued by their own company. This is unique in its kind in Germany."