DGAP-News: KION Group further optimises its funding

DGAP-News: KION GROUP AG / Key word(s): Bond KION Group further optimises its funding structure by repaying bonds (news with additional features) 02.04.2014 / 09:40 --------------------------------------------------------------------- - Bonds of EUR325 million and EUR200 million to be repaid in full - Refinancing with drawing of revolving credit facility and additional bank loan - CFO Toepfer: "Lower interest payments open up greater flexibility" - Further reduction of net financial debt and leverage are expected Wiesbaden, 2 April 2014 - KION GROUP AG is continuing to improve its funding structure by repaying secured corporate bonds with a total volume of EUR525 million. A fixed-rate bond maturing in 2018 with a volume of EUR325 million and a coupon of 7.875 per cent and a floating-rate bond maturing in 2020 with a volume of EUR200 million and a coupon of three-month Euribor plus 4.5 per cent are to be paid back in full on 15 April 2014 using the existing revolving credit facility and a further bank loan of EUR200 million. "This step will lower our interest payments and give us greater flexibility with which to pursue implementing our growth strategy," said the KION Group's Chief Financial Officer, Thomas Toepfer. The KION Group expects to save over EUR20 million per year in interest payments. Under the terms and conditions of the bonds, early repayment charges of around EUR15 million must be paid. This amount, along with the reversal of the capitalised borrowing costs of around EUR8 million, will be recognized as one-off financial expenses in the second quarter. Once the bonds have been repaid, the company's long-term borrowing will comprise the fixed-rate corporate bond with a volume of EUR450 million and a maturity date of 2020, the revolving credit facility of EUR1,045 million expiring in 2018 and the further bank loan of EUR200 million maturing in 2019. Having substantially reduced its net financial debt to EUR979 million as at 31 December 2013 in connection with the IPO, the KION Group's aim for this year and the medium term is to continue to steadily reduce its levels of debt and leverage. "We expect to be able to bring down our net debt using cash flow from operating activities and we will thereby continuously improve our capital and funding structure," said Toepfer. Business performance in 2013 The KION Group can look back on a solid 2013. EBIT and profitability reached record levels despite weakness in the western European market and unfavourable currency effects. The Group recorded order intake and revenue at similarly high levels to those in the previous year, after adjusting for the sale of the hydraulics business in 2012. About KION Group The KION Group - comprising the six brands of Linde, STILL, Fenwick, OM STILL, Baoli and Voltas - 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 market leader in India in industrial trucks. The KION Group is present in more than 100 countries. In 2013 the KION Group employed more than 22,000 people and generated revenue of EUR4.49 billion. 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 michael.hauger@kiongroup.com Frank Brandmaier Head of Corporate Media Relations Tel.: +49 (0) 611.770-752 frank.brandmaier@kiongroup.com Further information for investors Frank Herzog Head of Corporate Finance Tel.: +49 (0) 611.770-303 frank.herzog@kiongroup.com Silke Glitza Head of Investor Relations and M&A Tel.: +49 (0) 611.770-450 silke.glitza@kiongroup.com End of Corporate News +++++ Additional features: Document: http://n.equitystory.com/c/fncls.ssp?u=APQJDAGHTW Document title: Download Press Release --------------------------------------------------------------------- 02.04.2014 Dissemination of a Corporate News, transmitted by DGAP - a company of EQS Group AG. The issuer is solely responsible for the content of this announcement. DGAP's 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: info@kiongroup.com Internet: www.kiongroup.com ISIN: DE000KGX8881 WKN: KGX888 Indices: SDAX Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin, Düsseldorf, Hamburg, Hannover, München, Stuttgart End of News DGAP News-Service --------------------------------------------------------------------- 260911 02.04.2014