Heidelberg is setting the next milestone in its ongoing financial stabilization and transformation process. The company announced on 7 August 2020 that it will pay back the remaining amount of € 150 million on the existing high-yield bond (HYB), which has a term to maturity until 2022 and a coupon of 8% per annum plus accrued interest before maturity, i.e., on 9 September 2020. The payback will be funded from cash reserves and will unburden the financial result by approximately € 12 million per year.
After the transfer of € 380 million in funds to the company from Heidelberg Pension-Trust e.V. in March this year for refinancing and transformation, and the sale of the Gallus Group at the end of July 2020, Heidelberg will make the announced early repayment of the high-yield bond without delay.
“We are keeping our word and are working full speed ahead to consistently implement the measures announced in the program we presented in March to increase profitability, competitiveness and to secure our future. The early repayment of the high-yield bond is a further milestone in improving our financing structure. We are permanently freeing ourselves from high-interest payments and are becoming more financially independent and flexible,” says Marcus A. Wassenberg, CFO of Heidelberg. Rainer Hundsdörfer, CEO of Heidelberg, explains: “And this gives us leeway for future investments and to shape the future of our company.”
After the envisaged buyback of the high-yield bond, Heidelberg continues to have a stable financial framework, among other things, due to a syndicated credit line, which is agreed until 2023.
Under the bond conditions, the repayment on 9 September 2020 will take place by means of a publicly announced optional early redemption with a redemption value of 100 % plus accrued interest. The announcement of the buyback can also be viewed directly on the website of the Luxembourg stock exchange.