HÖRMANN Group offers new corporate bond

The technology specialist HÖRMANN Finance is to offer a new corporate bond (German Securities Code Number (WKN): A2AAZG) with a total volume of up to EUR 30 million and a term of five years. The offer is subject to the nominal placement volume reaching at least EUR 25 million. The annual fixed interest rate for the new bonds will be determined by way of bookbuilding after the end of the offer period on the basis of the subscription orders received and announced in the form of a pricing notice. The subscription period for the public offer begins on 15 November 2016 is scheduled to end at 2:00 p.m. on 17 November 2016 (subject to extension or early conclusion). A range for the interest rate will be set and published prior to the start of the subscription period. The bond is expected to be admitted to trading on the Frankfurt Stock Exchange in the Entry Standard for corporate bonds on 21 November 2016. The public offer is being made in Germany, Luxembourg and Austria. The bonds, each of which has a nominal value of EUR 1,000, can be purchased via banks and online brokers on the Frankfurt Stock Exchange. The issue is being supported by equinet Bank AG and IKB Deutsche Industriebank AG as joint lead managers and joint bookrunners.

The net issue proceeds will be used for the early repayment of the outstanding EUR 50 million 2013/2018 bond (WKN: A1YCRD), which will be terminated prematurely on 5 December 2016 once the new bond has been issued. In this case, holders of the 2013/2018 bond will receive 102% of the nominal value of the bonds held, plus accrued interest. Cash will be used in addition to those proceeds to repay the bond in full, thereby reducing the overall financial liabilities of the HÖRMANN Finance Group.

Johann Schmid-Davis, CFO of HÖRMANN Finance GmbH: “We have further strengthened our sales and earnings base with the recent expansion of our investment portfolio and consider ourselves to be well positioned for the future with our three strong pillars of Automotive, Engineering and Communication. At the same time, we want to continue to optimise our medium-term financing structure and reduce our financial liabilities in light of our comfortable liquidity position.”

Since issuing the listed corporate bond in 2013, the technology specialist HÖRMANN Finance has established itself as a reliable capital market partner and a solid investment. The HÖRMANN Finance Group, which has 2,283 employees, generated consolidated sales of around EUR 435 million, operating EBIT of EUR 11.9 million and consolidated net income after taxes of EUR 6.2 million in the 2015 financial year. At the interim reporting date 30 June 2016, the company was free of net debt with cash and cash equivalents of EUR 71 million and had an equity ratio of around 33%. In October 2016, Euler Hermes Rating GmbH upgraded its rating for HÖRMANN Finance GmbH from BB- to BB (stable outlook) in light of its solid capital structure and financial flexibility.

The securities prospectus, which has been approved by the Commission de Surveillance du Secteur Financier (CSSF), Luxembourg, is available to download at www.hoermann-gruppe.com/en/overview and www.bourse.lu.

Key data on the HÖRMANN 2016 corporate bond (indicative)

Issue volume: up to EUR 30 million (minimum volume: EUR 25 million)
Subscription period: 15 to 17 November 2016, 2:00 p.m. (subject to extension or early conclusion)
Subscription available through: Frankfurt Stock Exchange, via principal or direct bank
German Securities Code Number (WKN) / ISIN: A2AAZG / DE000A2AAZG8
Denomination: EUR 1,000
Interest rate (coupon) p.a.: to be announced after the end of the subscription period, provisionally scheduled for 17 November 2016
Term: 5 years
Interest payments: annually, first payment on 21 November 2017
Repayment price: nominal value (100%)
Company rating: BB (stable), Euler Hermes Rating GmbH (October 2016)
Covenants: change of control, cross default, negative covenant,
restriction on distribution, restriction on disposal
Type of security: bearer bond
Stock exchange segment: Open Market of the Frankfurt Stock Exchange in the Entry Standard segment for corporate bonds
Value date/listing: 21 November 2016