SAF-HOLLAND: Promissory note loan successfully placed - original targeted volume of at least EUR 100 million oversubscribed multiple times, stepped up to EUR 250 million

Luxembourg, March 9, 2020. SAF-HOLLAND SE, one of the leading suppliers to the truck and trailer industry worldwide successfully placed a promissory note transaction today with a volume of EUR 250 million via its subsidiary, SAF-HOLLAND GmbH. Because of the high demand and the resulting over-subscription, the final amount exceeded the target volume of EUR 100 million by EUR 150 million.
 

The tranches of the promissory note feature fixed as well as variable rates and maturities of three, three and a half, five, seven and ten years. All tranches were allocated at the lowest end of the respectively offered price range. The loan will be paid out to the company at the end of March and at the end of September 2020.
 

The proceeds will be used to finance the company generally and, in particular, to refinance the convertible bond that falls due on 12 September 2020 (volume: EUR 99.8 million) and the 5-year tranches of the promissory note issued in November 2015 that falls due on 27 November 2020 (volume: EUR 140.5 million).
 

The issue will contribute to smoothing out the maturity profile and will widen the investor base of the SAF-HOLLAND Group. The promissory note was placed with a total of 20 banks and institutional investors in Germany and abroad.
 

Dr. Matthias Heiden, CFO of the SAF-HOLLAND Group says: "In light of the current challenges facing the sector, we are extremely satisfied with the volume of the placement, which is well above our initial expectations. The pleasing response from debt investors and the attractive conditions of the promissory note confirm the excellent rating of the SAF-HOLLAND Group and the trust placed in our strategic alignment as an innovative partner of the international commercial vehicle industry."
 

Alexander Geis, CEO of the SAF-HOLLAND Group adds: "The promissory note is another important element in the consistent implementation of our strategy and provides us with additional flexibility and planning certainty for the coming years."
 

The transaction was accompanied by IKB Deutsche Industriebank AG as the Sole Lead Arranger. Noerr LLP acted as legal counsel to SAF-HOLLAND GmbH.

 

About SAF-HOLLAND
 

SAF-HOLLAND SE, located in Luxembourg, is the largest independent listed supplier to the commercial vehicle market in Europe delivering mainly to the trailer markets. With sales of approximately EUR 1,301 million in 2018, the Company is one of the world's leading manufacturers and suppliers of chassis-related systems and components primarily for trailers, trucks, buses, and recreational vehicles. The product range comprises axle and suspension systems, fifth wheels, kingpins, and landing gear marketed under the brands SAF, Holland, Neway, KLL, V.Orlandi and York. SAF-HOLLAND sells its products to Original Equipment Manufacturers (OEM) on six continents. The Group's Aftermarket business supplies spare parts to the service networks of Original Equipment Suppliers (OES), as well as to end customers and service centers through its extensive global distribution network. SAF-HOLLAND is one of the few suppliers in the truck and trailer industry that is internationally positioned in almost all markets worldwide. With the innovation campaign "SMART STEEL - ENGINEER BUILD CONNECT" SAF-HOLLAND combines mechanics with sensors and electronics and drives the digital networking of commercial vehicles and logistics chains. Approximately 4,000 committed employees worldwide are already today working on the future of the transportation industry.
 

Contact

Michael Schickling
Head of Investor Relations and Corporate Communications
Tel: +49 (0) 6095 301 617

 

Future-oriented statements

This press release contains certain future-oriented statements that are based on current assumptions and forecasts made by the management of SAF-HOLLAND SE. Various known and unknown risks, uncertainties and other factors may lead to the actual results, financial position, development or performance of the company deviating considerably from the appraisals specified here. The company assumes no obligation to update future-oriented statements of this nature or adapt them to future events or developments.
 

Notes

This announcement is for information purposes only and does neither constitute an offer to sell, purchase, exchange or transfer any securities nor a solicitation of any offer to sell, purchase, exchange or transfer any securities. The securities referred to herein have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the "Securities Act") and may not be offered or sold in the United States absent registration or an exemption from registration under the Securities Act. SAF-HOLLAND SE does not intend to register any securities referred to herein under the Securities Act or with any securities regulatory authority of any state or other jurisdiction in the United States in connection with this announcement.