Koenig & Bauer has successfully completed an early refinancing round, aimed at ensuring the medium-term stability of its funding capabilities.
The new syndicated credit facilities replace existing arrangements, which were due to expire at the end of 2024. In addition to a revolving cash facility of €300 million, the syndicate finance includes a guarantee facility of €200 million. The credit facilities have a maturity of five years, meaning that they will expire in October 2028, subject to a two-year extension option in agreement with the lenders. To highlight the importance that Koenig & Bauer attaches to sustainability in its funding operations, the agreement now provides for an ESG rendezvous clause in addition to the usual loan market association (LMA) requirements. This is to be implemented in 2024, subject to the consent of all parties involved.
The banking syndicate is lead-managed and the facility arranged by Commerzbank Aktiengesellschaft and UniCredit Bank. It also includes Bayerische Landesbank, BNP Paribas Niederlassung Deutschland, Deutsche Bank, DZ Bank, HSBC Continental Europe, Germany and Landesbank Baden-Württemberg. Credit Suisse (Schweiz) has also been gained as a further member. In addition, KfW, which is now in a new role, will remain in the syndicate via the 290 funding programme for digitalisation and innovation.
Dr Stephen Kimmich, CFO at Koenig & Bauer, said, ‘As in the past, our own liquidity together with the flexible credit facilities will allow us to finance our planned organic growth in the promising market of packaging printing, giving us the financial leeway we require for strategic investments and acquisitions. With the early termination of the KfW loan obtained in connection with the Covid-19 pandemic, Koenig & Bauer will no longer be subject to any of the restrictions associated with that loan.’
