Allen & Overy has advised Schaeffler Holding the conclusion of a new loan agreement for EUR 2.375 billion and the issuance of high yield bonds in the amount of 1.55 billion euros.

The new credit agreement was signed with several international banks closed by the Schaeffler Verwaltungs GmbH, a subsidiary of Schaeffler Holding. The previous credit agreement dated November 2009 was thus completely replaced. The new refinancing package was completed to significantly improved conditions and includes loans amounting to EUR 2,175 million and an operating line of credit of 200 million euros. The loans have a term until 2017.

The Schaeffler Holding next 18 July 2013 bonds with a total volume of around 1.5 billion euros successfully placed. The bonds were oversubscribed more than four times. The bonds were placed in record time with international investors in Europe and the United States.
The issue consists of a euro-and dollar tranche. The euro tranche of 800 million euro and the dollar tranche of 1,000 million U.S. dollars bear interest at 6.875 percent respectively. Both tranches have a term of five years.

The bonds will be issued by Schaeffler Holding Finance BV, Netherlands and guaranteed by Schaeffler Verwaltungs GmbH. You will be introduced to the open market of the Luxembourg Stock Exchange. The ratings of the new high-yield bonds are B-by Standard & Poor's and B2 by Moody's.
With the high yield some of the existing bank loans is repaid early. The remaining volume of credit was refinanced on improved terms. Through these measures, the borrowing costs are significantly reduced at the level of the Schaeffler Holding.

The Allen & Overy team from Germany has the lead partner Dr. Walter Uebelhoer, Thomas Neubaum (both Banking and Financial Law, Munich and Frankfurt) and Gernot Wagner (High Yield Bond U.S. Corporate Finance, Frankfurt).

Furthermore, the partners were Dr. Alexander Veith (Corporate, Munich) and Dr. Heike Weber (Tax, Frankfurt), the Counsel Dirk Eisel and Dr. Knut Sauer (both International Capital Markets, Frankfurt), the senior associates Dr. Urs Lewens (Banking and Finance, Frankfurt) and Dr. Sten Frenzel (Corporate, Munich) and associates Rebecca Emory (U.S. Corporate Finance), Dr. Alexander Schlee (International Capital Markets, Frankfurt), Dr. Carla Thies, Elke spark Hoetzel Patrick Reuter, Alexander Schilling (all banking and financial law, all Frankfurt and Munich) and Simon Schmid (Corporate, Munich) involved.

More Allen & Overy team from England, Luxembourg and the Netherlands were also involved in the transaction.