Heidelberg has further optimised its financing structure and agreed a new syndicated credit line with improved conditions with its banking group. By taking out the credit line with a higher total of €320 million and a term that runs till March 2023, the company is creating financial flexibility and longer-term planning certainty. Besides supporting the day-to-day operational business of the global organisation, the new credit facility underpins the strategy of further expanding new digital business models, such as the newly established subscription portfolio.
‘This refinancing is another sign of the banks’ confidence in our strategic roadmap to a digital future,’ said Dirk Kaliebe, CFO of Heidelberg. ‘The financial basis for our new digital technologies and business models has been secured for the long term. We have numerous options at our disposal for driving forward our growth strategy. At the same time, we are able to further reduce interest costs by optimising the financial framework.’
The new credit line also gives Heidelberg more flexibility to pay off a portion of the existing 8 per cent bond, due in 2022, ahead of time and under more advantageous conditions. Heidelberg is planning to reduce its financing interest by close to half to around €20 million in the medium term.
Due to the newly syndicated credit line, Heidelberg has further improved its financing structure in terms of the maturity profile and conditions. The financial framework thus consists primarily of the newly syndicated credit line for €320 million that runs till March 2023, a convertible bond for €59 million that runs till March 2022, a bond for €204 million that runs till May 2022 but can be redeemed prematurely, and an EIB loan for €100 million that runs till 2024. Heidelberg has therefore, agreed a financial framework for its business development that is very solid but also flexible. The diversified financing structure is still based on the three pillars of credit facility, capital market, and special financing.
The broad-based banking consortium behind the credit facility comprises the six main lenders Bank of China, BNP Paribas, Commerzbank, Deutsche Bank, HSBC, and LBBW. Completing the consortium are DZ Bank, IKB, NIBC, and Saar LB.