HANNOVER, Germany (Sept. 27, 2010) — Continental A.G. is planning another Eurobond issue — its third in the space of three months — to raise $1.7 billion in new capital to be used to pay down bank liabilities.
As with the earlier two bonds, the latest offering is not intended for investors in the U.S., Canada, Australia or Japan, the company said.
Earlier Conti issued Eurobonds worth $1.3 billion and $1 billion in September and July. The minimum denomination for this bond will be $65,000. Conti plans to launch the bond offering in two tranches with maturities in 2016 and 2018.
Conti again has appointed a bank consortium led by Citi and Royal Bank of Scotland to place the two tranches of euro-denominated bonds with qualified investors in Germany and abroad. The bank consortium further includes Commerzbank, Goldman Sachs, ING, Landesbank Baden-WÃ¼rttemberg and UniCredit Bank.
“In our communication with existing and potential investors, we received the feedback that there continues to be strong demand for Continental bonds. The bonds we have already placed were also significantly oversubscribed,” said Continental CFO Wolfgang SchÃ¤fer.
“In response to this continued strong demand, we have decided to issue further bonds with timing in close connection to the predecessors. This will help us to quickly achieve our goal of significantly improving the maturity profile.”