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Heidelberg secures $516m to expand digital

Thursday, 29 March 2018
By Print21

Press giant Heidelberg underlined the strength of the global print market by securing a €320 million ($A516 million) credit line to drive its digital transformation.

‘Confidence in our strategic roadmap to a digital future’: Dirk Kaliebe, CFO of Heidelberg.

“This refinancing is another sign of the banks’ confidence in our strategic roadmap to a digital future,” said Dirk Kaliebe, CFO of Heidelberg. “The financial basis for our new digital technologies and business models has been secured for the long term. We have numerous options at our disposal for driving forward our growth strategy. At the same time, we are able to further reduce interest costs by optimizing the financial framework.”

The new credit line gives Heidelberg more flexibility to pay off a proportion of the existing 8% bond due in 2022 ahead of time and under more advantageous conditions.

The financial framework thus consists primarily of the newly syndicated credit line for €320 million that runs till March 2023, a convertible bond for €59 million that runs till March 2022, a bond for €204 million that runs till May 2022 but can be redeemed prematurely, and an EIB loan for €100 million that runs till 2024, the company said in a statement.

Besides supporting the day-to-day operational business of the global organization, the new credit facility underpins the strategy of further expanding new digital business models, such as the newly established subscription portfolio. 

The broad-based banking consortium behind the credit facility comprises six main lenders: Bank of China, BNP Paribas, Commerzbank, Deutsche Bank, HSBC, and LBBW. Completing the consortium are DZ Bank, IKB, NIBC, and Saar LB.

 

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