Progress-Werk Oberkirch AG

Progress-Werk Oberkirch AG / Key word(s): Corporate Action

17.04.2014 / 08:00

Press Release

PWO successfully places a promissory note loan of EUR 60 million

- First-time issue of this attractive type of instrument

- Highly oversubscribed within an extremely short time period

- A large number of promissory note investors attracted

Oberkirch, April 17, 2014 - Progress-Werk Oberkirch AG issued a promissory note loan and, as a result, has locked in the favorable prevailing level of interest rates for a longer period of time. The proceeds from this issue will secure our upcoming growth and will be used to refinance existing current bank liabilities over the medium and long term.

Within an extremely short period of time, PWO's first emission of this type was five times oversubscribed. Hence, the volume of EUR 30 million initially planned was doubled to EUR 60 million. The promissory note loan is divided into four tranches with maturities of five and seven years. A large number of banks, savings banks, and other institutions in German-speaking regions were acquired as promissory note investors. The transaction was accompanied by Landesbank Baden-Württemberg.

Bernd Bartmann, Management Board Member for Administration and Finance, is proud of the emission's success: "By issuing this promissory note loan, we have gained yet a further attractive instrument for our refinancing. Once again, this has helped us to improve our excellent positioning for the growth we have planned for the future. We look forward to faithfully working together in the future with an additional group of investors, beyond our principal banks."

Karl M. Schmidhuber, Chief Executive Officer, emphasized: "The high demand seen for our subscription offer confirms PWO's solid reputation and the confidence of investors in our well-established business model. The favorable refinancing conditions we have been able to secure will contribute to PWO's further success."

Progress-Werk Oberkirch AG
The Management Board

PWO company profile
PWO is one of the world's leading developers and manufacturers of advanced metal components and systems in lightweight construction for automotive safety and comfort. The company has developed a unique knowledge in the forming and joining of metals over the course of its 95-year history since it was founded in 1919. The German location at Oberkirch currently employs over 1,500 staff members. The Group is globally represented with further sites in Canada, the Czech Republic, China, and Mexico and employs around 3,100 staff members around the world.

PW0 is a partner to the global automotive industry for the development and production of innovative products in the divisions "Mechanical components for electrical and electronic applications", "Safety components for airbags, seats and steering" and "Components and sub-systems for vehicle bodies and chassis".

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