DGAP-News: KION GROUP AG / Key word(s): Financing KION Group renews financing with significantly improved terms (news with additional features) 05.02.2016 / 08:04 The issuer is solely responsible for the content of this announcement. --------------------------------------------------------------------------- - EUR 1.5 billion refinancing with new credit facility reflecting investment grade terms - Early redemption of EUR 450 million 6.75 per cent bond - Significantly reduced interest costs and more flexibility - Final step in transformation of pre-IPO financing structure Wiesbaden, 5 February 2016 - KION Group is implementing a financing structure with typical terms for established corporates. In this context it is repaying the last bond issued before its IPO and is refinancing its old pre-IPO credit facility now with significantly improved terms reflecting investment grade style features. The EUR 450 million bond with a coupon of 6.75 per cent issued in 2013 and maturing in 2020 will be fully repaid on 15 February 2016. The bond and drawings under the old credit facility will be repaid from a new corporate credit facility for EUR 1,500 million. This transaction is the last step by KION Group to transform its financing structure dating from before its IPO in June 2013. The Wiesbaden based group expects significant interest savings: if the refinancing had taken place at the beginning of 2015, annual interest expenses for that year would have been ca. EUR 30 million lower. Under the terms and conditions of the bond, early redemption payments of ca. EUR 15 million will be booked as financial expenses in the first quarter of 2016, yet will be quickly recovered from the interest savings. In addition, the reversal of the remaining capitalized borrowing costs of ca. EUR 11 million for the bond and the old credit facility will also be recorded as financial expenses in the first quarter of 2016, but will not impact cashflow. "These financing transactions are further important milestones for the KION Group, because we are now set up also on the financing side as an established listed corporate", said the CFO of KION Group, Thomas Toepfer. "We have now left the last elements of our financing from the early days of the KION Group behind us. The new financing with investment grade style features significantly improves the terms for the KION Group and its flexibility to pursue its profitable growth." The new corporate credit facility for EUR 1,500 million has two tranches. The revolving credit line for EUR 1,150 million has a maturity of five years with two extension possibilities for one year each. This credit line will be used to fund existing bank debt and part of the bond repayment and it will be available for working capital requirements, potential smaller acquisitions and as a liquidity reserve. The second tranche for EUR 350 million with a three year maturity will be used to fund the bond repayment until a potential refinancing in the capital markets. The new corporate credit facility is unsecured and only guaranteed by KION GROUP AG. It has investment grade style features and provides KION Group with significant flexibility to grow its operating business and further develop its end customer financing activities. The club deal was arranged by KION Group with a group of thirteen relationship banks as Bookrunners and Mandated Lead Arrangers. Website: kiongroup.com/mediasite Twitter: @kion_group The Company The KION Group - comprising the seven brands of Linde, STILL, Fenwick, OM STILL, Baoli, Voltas and Egemin Automation - is the largest manufacturer of industrial trucks in western and eastern Europe, the global number two in the industry and the leading non-domestic supplier in China. The Linde and STILL brands serve the premium segment worldwide. Fenwick is the largest supplier of material handling products in France, while OM STILL is a market leader in Italy. The Baoli brand focuses on the economy segment, and Voltas is a leading provider of industrial trucks in India. Egemin Automation is a leading Belgian logistics automation specialist. The KION Group is present in more than 100 countries and, in 2014, employed almost 23,000 people and generated revenue of around EUR4.7 billion. KION GROUP AG is listed on Deutsche Börse's Frankfurt Stock Exchange, the MDAX (the German stock index for medium-sized companies) and the STOXX Europe 600 index, which comprises the 600 largest companies in Europe. Disclaimer This document and the information contained herein are for information purposes only and do not constitute a prospectus or an offer to sell or a solicitation of an offer to buy any securities in the United States or in any other jurisdiction. This release contains forward-looking statements that are subject to various risks and uncertainties. Future results could differ materially from those described in these forward-looking statements due to certain factors, e.g. changes in business, economic and competitive conditions, regulatory reforms, results of technical studies, foreign exchange rate fluctuations, uncertainties in litigation or investigative proceedings, and the availability of financing. We do not undertake any responsibility to update the forward-looking statements in this release. Further information for the media Michael Hauger Head of Corporate Communications Tel.: +49 (0)611 770 655 [email protected] Frank Brandmaier Head of Corporate Media Relations Tel.: +49 (0)611 770 752 [email protected] Further information for investors Frank Herzog Head of Corporate Finance Tel.: +49 (0)611 770 303 [email protected] Dr Karoline Jung-Senssfelder Head of Investor Relations and M&A Tel.: +49 (0)611 770 450 [email protected] +++++ Additional features: Document: http://n.eqs.com/c/fncls.ssp?u=OVYNFFVTCF Document title: Download press release as PDF --------------------------------------------------------------------------- 05.02.2016 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG. The issuer is solely responsible for the content of this announcement. The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de --------------------------------------------------------------------------- Language: English Company: KION GROUP AG Abraham-Lincoln-Str. 21 65189 Wiesbaden Germany Phone: +49 (0)611 770-0 Fax: +49 (0)611 770-690 E-mail: [email protected] Internet: www.kiongroup.com ISIN: DE000KGX8881 WKN: KGX888 Indices: MDAX Listed: Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover, Munich, Stuttgart End of News DGAP News Service --------------------------------------------------------------------------- 435019 05.02.2016