HÖRMANN Group issues new corporate bond

HÖRMANN Industries GmbH intends to issue a new corporate bond with a volume of up to EUR 50 million. The issue proceeds will be used for the early refinancing of the bond that is scheduled to mature in 2021 (German Securities Code Number (WKN): A2AAZG, volume: EUR 30 million), which has a call option from 21 November 2019 at a price of 101.5%. The proceeds will also be used for general corporate financing, including the modernisation and automation of the existing production facilities in the Automotive segment and the enhancement of the other segments through targeted acquisitions. The bonds will be publicly offered in Germany and Luxembourg. The necessary securities prospectus was today approved by the Commission de Surveillance du Secteur Financier (CSSF), and the German Federal Financial Supervisory Authority (BaFin) was notified. The bonds will also be offered to institutional investors in selected European countries by way of a private placement conducted by the joint lead managers, Pareto Securities and IKB Deutsche Industriebank AG.

The issue includes a public conversion offer for the bond due in 2021, which will begin on 9 May 2019 and is scheduled to run until 6:00 p.m. on 23 May 2019. For each 2016/2021 bond converted, holders will receive a new 2019/2024 bond plus a cash payment comprising a conversion bonus of EUR 25.00 plus the interest accrued on the converted 2016/2021 bonds. Creditors taking part in the public conversion offer will also be given the option to acquire multiple subscriptions. The subscription period for the public offer via the DirectPlace subscription tool begins on 22 May 2019 and is scheduled to end at 10:00 a.m. on 28 May 2019 (subject to extension or early conclusion). The new bond from HÖRMANN Industries (ISIN NO0010851728 / WKN A2TSCH) is subject to Norwegian law. It has a term of five years. The minimum investment amount is EUR 1,000. The interest rate will be at least 4.500%. The final interest rate will be determined and communicated on 28 May 2019 on the basis of the subscription offers. The bond is expected to be listed on the Open Market of the Frankfurt Stock Exchange and the unregulated Nordic ABM segment of the Oslo Stock Exchange.

Since issuing its first listed corporate bond in 2013, technology specialist HÖRMANN Industries has made a name for itself as a dependable capital market partner and a sound investment. Last financial year was its best since 2008. All four divisions – Automotive, Communication, Engineering and Services – made a positive contribution to earnings in 2018.

Dr.-Ing. Michael Radke, CEO of HÖRMANN Industries, commented, ‘Our strategic approach of diversifying while concentrating on our four core divisions at the same time has proved its worth. We are growing organically in all divisions and deliberately inorganically in some cases and have secured a good position relative to the competition – one that we intend to continue consolidating.’

In the 2018 financial year, sales increased from EUR 521.9 million (2017) to EUR 624.1 million, while operating earnings before interest and taxes (EBIT) improved to EUR 30.5 million (previous year: EUR 21.1 million). Johann Schmid-Davis, CFO of HÖRMANN Industries, said, ‘Even amidst generally good economic conditions, an upturn in sales of around 20% is a remarkable accomplishment. Our operating EBIT increased by 45%, and at roughly 38%, our equity ratio as at 31 December 2018 is at a level that is very agreeable for an SME of our size. In addition, we are well diversified not only operationally but also in terms of our financial structure. We will keep working on strengthening our four divisions and on continuing to grow, but in a way that is controlled and thus sustainable. Another of our goals is further optimising our medium- to long-term financing structure at an early stage.’

The CSSF-approved prospectus is available to download at www.hoermanngruppe.de/investor-relations and www.bourse.lu.

Key data regarding HÖRMANN 2019/2024 corporate bond (indicative)

Issue volume: up to EUR 50 million
Conversion deadline: 9 to 23 May 2019, 6:00 p.m. (via principal bank or direct bank)
Conversion deadline: 22 to 28 May 2019, 2:00 p.m. (subject to early closure)
Subscription available through: Frankfurt Stock Exchange, via principal or direct bank
WKN/ISIN: A2TSCH/NO0010851728
Denomination: EUR 1,000
Minimum interest rate: 4.500%
Interest rate (coupon) p.a.: to be announced after the end of the subscription period at the latest; provisionally scheduled for 28 May 2019
Term: 5 years 
Interest payments: annually; first payment on 6 June 2020
Repayment price: nominal value (100%)
Company rating: BB (stable), Euler Hermes Rating GmbH (October 2018)
Covenants: change of control, cross default, negative covenant, restriction on distribution, restriction on disposal, restriction on additional borrowing
Type of security: bearer bond under Norwegian law
Trustee: Nordic Trustee AS
Stock exchange segments: Open Market, Frankfurt Stock Exchange; Nordic ABM, Oslo Stock Exchange
Value date/listing: 6 June 2019; earlier listing on Open Market possible