GEA optimizes financing structure
Düsseldorf – GEA Group Aktiengesellschaft has optimized its financing structure by further extending maturities, improving margins, and adding greater flexibility to redemption options. This is the result of a new loan agreement for over EUR 90 million signed with Kreditanstalt für Wiederaufbau (KfW) and modifications to the EUR 650 million syndicated credit line agreed in June 2010.
The modifications to the syndicated credit line include extending the previously three-year tranche to the final maturity of the five-year tranche (June 2015), in addition to significantly improved margins. This modification of the credit documentation was implemented with the agreement of all the existing syndicate banks.
The EUR 90 million loan from KfW is a co-financing of the existing December 2009 loan agreement with the European Investment Bank and will also be used to finance research and development expenses. GEA and KfW agreed on a five-year term for the loan, with annual redemption payments.
“After issuing the EUR 400 million corporate bond in April, we have undertaken further steps to optimize our financing structure with the modifications to the syndicated credit line and the newly signed KfW loan. The positive reactions on the credit market confirm that GEA is in a position to finance its growth at attractive conditions,” noted Dr. Helmut Schmale, CFO of GEA Group Aktiengesellschaft.
GEA Group Aktiengesellschaft is one of the largest suppliers of process technology and components for the food and energy industries. As an international technology group, the Company focuses on sophisticated production processes. In 2010, GEA generated consolidated revenues in excess of EUR 4.4 billion, 70 percent of which came from the food and energy sectors, which are long-term growth industries. The group employed about 23,000 people worldwide as of March 31, 2011. GEA Group is a market and technology leader in its business areas. It is listed in Germany’s MDAX stock index (G1A, WKN 660 200). In addition GEA Group has a sponsored level I ADR program in the USA.
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