Schaeffler Holding creates new financing structure

Reduction of financial indebtedness through placement of shares of Schaeffler AG / Full refinancing of remaining financial obligations / Sustainable improvement of capital structure
(PresseBox) (Herzogenaurach, ) Schaeffler Verwaltungs GmbH, a subsidiary of INA-Holding Schaeffler GmbH & Co KG, announced today its intention to rearrange its external financial indebtedness in an aggregate amount of approximately EUR 3.6 billion in the context of the envisaged placement of Schaeffler AG shares.

It is intended to reduce the financial indebtedness from the application of proceeds of the sale of Schaeffler AG shares and to fully refinance its remaining financial indebtedness. For this purpose, a syndicate consisting of four banks has committed to provide a term loan, a revolving credit facility and a bridge loan which will be taken out by the issuance of new bonds at the level of Schaeffler Holding at a later stage.

All outstanding bonds of Schaeffler Holding Finance B.V. will be redeemed subject to certain financing conditions, including the closing of the share placement. Klaus Rosenfeld, Member of the Executive Board of Schaeffler Verwaltungs GmbH, said: “The envisaged measures are intended to reduce financial liabilities at the level of Schaeffler Holding and improve its capital structure in a sustainable manner.”

Forward-looking statements and projections

Certain statements in this announcement are forward-looking statements. By their nature, forward-looking statements involve a number of risks, uncertainties and assumptions that could cause actual results or events to differ materially from those expressed or implied by the forward-looking statements. These risks, uncertainties and assumptions could adversely affect the outcome and financial consequences of the plans and events described herein. No one undertakes any obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. You should not place any undue reliance on forward-looking statements which speak only as of the date of this announcement. Statements contained in this announcement regarding past trends or events should not be taken as representation that such trends or events will continue in the future. The cautionary statements set out above should be considered in connection with any subsequent written or oral forward-looking statements that Schaeffler, or persons acting on its behalf, may issue.

Important Notice

This announcement is not for distribution in or into the United States, Canada, Australia or Japan.

This announcement does not contain or constitute an offer to sell, or the solicitation of an offer to buy or subscribe for, any securities in Australia, Canada, Japan or the United States, or in any jurisdiction in which such offer, solicitation or sale would be unlawful. Subject to certain exceptions, the securities referred to herein may not be offered or sold in Australia, Canada, Japan or the United States, or to, or for the account or benefit of, any national, resident or citizen of Australia, Canada, Japan or the United States. The offer and sale of the securities referred to herein has not been and will not be registered under the applicable securities laws of Australia, Canada, Japan or the United States. There will be no public offer of the securities in any jurisdiction.

The securities referred to herein have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the “U.S. Securities Act”), or any U.S. state security laws and may not be offered or sold in the United States or to U.S. persons absent registration or an applicable exemption from the registration requirements of the U.S. Securities Act.

This announcement has been prepared on the basis that there has not been nor will be a public offering in connection with this transaction nor will there be a public offering of the securities. No approved prospectus has been or will be prepared in connection with this transaction. Any offer of securities in any Member State of the European Economic Area which has implemented the Prospectus Directive (as defined below) (each, a "Relevant Member State") will only be made if no prospectus for offers of securities has to be published. Accordingly any person making or intending to make any offer in that Relevant Member State of securities which are the subject of the placement contemplated in this announcement may only do so in circumstances in which no obligation arises for Schaeffler to publish a prospectus pursuant to Article 3 of the Prospectus Directive or supplement a prospectus pursuant to Article 16 of the Prospectus Directive, in each case, in relation to such offer. Schaeffler has not authorized, nor will it authorize, the making of any offer of securities in circumstances in which an obligation arises for Schaeffler to publish or supplement a prospectus for such offer. The expression “Prospectus Directive” means Directive (2003/71/EC) (and amendments thereto, including Directive 2010/73/EU, to the extent implemented in the Relevant Member State), and includes any relevant implementing measure in the Relevant Member State.

In the United Kingdom, this announcement is only being distributed to, and is only directed at, and any investment or investment activity to which this announcement relates is available only to, and will be engaged in only with, “qualified investors” (as defined in section 86(7) of the Financial Services and Markets Act 2000) (i) who are persons having professional experience in matters relating to investments who fall within the definition of “investment professionals” in Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the “Order”); or (ii) who are high net worth entities falling within Article 49(2)(a) to (d) of the Order, or other persons to whom it may otherwise be lawfully communicated (all such persons together being referred to as “relevant persons”). Persons in the United Kingdom who are not relevant persons should not take any action on the basis of this announcement and should not act or rely on it.

Kontakt

Schaeffler AG
Industriestraße 1-3
D-91074 Herzogenaurach
Christoph Beumelburg
Schaeffler AG
Leiter Kommunikation & Investor Relations
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