DGAP-News: VTG Aktiengesellschaft: VTG's new funding structure secures long term growth perspectives
(firmenpresse) - DGAP-News: VTG Aktiengesellschaft / Key word(s): Capital
Reorganisation
VTG Aktiengesellschaft: VTG's new funding structure secures long term
growth perspectives
05.05.2011 / 07:30
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VTG's new funding structure secures long term growth perspectives
- Successful US private placement
- New syndicated loan
- Strong basis for further strategic growth through new funding structure
Hamburg, 5 May 2011: VTG Aktiengesellschaft (WKN: VTG999) bases its new
funding structure on a US private placement and a syndicated loan facility.
With these measures, the company is orienting its fundamental financing on
its long term business model. At the same time, VTG will now have
substantial means at its disposal within the next years, enabling it to
continue to pursue its growth strategy of the last few years.
Dr. Kai Kleeberg, Chief Financial Officer of VTG AG, assesses this move as
follows: 'With this newly arranged financing, we have succeeded in laying
the groundwork for further growth at VTG. We can now continue to take
advantage of the available market opportunities, which would no longer have
been possible under the old funding structure. We were able to combine an
attractive capital markets product with solid bank financing at very good
conditions. This combination of different financial instruments matches our
business model, as it is highly expandable and will allow us to be
distinctly more agile and powerful in our future activities', adding that
'Moreover, the significant degree of interest and trust we have met tells
us that our lenders are convinced by the stability and future potential of
VTG's business model'.
In VTG's new funding structure, a US private placement and a syndicated
loan are funding components that are ideally suited to VTG's need. In
total, the two financing instruments together make approximately EUR 930
million available to the company in the form of loans and credit lines. The
existing syndicated loan in the amount of EUR 640 million, obtained in 2005
and slightly amended in 2007, is thus redeemed to give way to an open
financing platform in which the US bond issue represents the long term
basic financing and the flexible credit lines support the funding of future
investments. In addition, there is now the possibility to create more room
for expanding into additional financial instruments.
The US private placement has been structured and prepared over the last few
months with the support of Deutsche Bank and Bank of America Merrill Lynch.
Institutional investors in the insurance and pension fund sectors were
impressed by the company's business model and strategy. The transaction was
many times oversubscribed. In total, investors placed EUR 450 million as
well as USD 40 million with 7, 10, 12 and 15 year maturities.
The syndicated loan in the amount of EUR 450 million was arranged by
Commerzbank, Deutsche Bank and UniCredit, with the participation of ten
more banks. It comprises a fixed term loan of EUR 100 million and revolving
credit lines of up to EUR 350 million. This facility has a five year term
and was also distinctly oversubscribed.
'This new funding structure gives us the leeway to continue our growth
strategy as concerns investments in our wagon fleet, controlled
acquisitions in other markets, and further development of our logistics
areas. In addition, our long-lasting capital assets are now financed on a
more long-term basis', estimates Dr. Heiko Fischer, Chairman of the
Executive Board of VTG Aktiengesellschaft. 'It gives us a chance to
actively participate in the further positive development of the European
rail market as well as to take advantage of upcoming opportunities for our
company and our shareholders', adds Fischer.
In view of the residual term of the previous financing measures, which ran
until 2015, there was no funding pressure on VTG, so that the Company was
able carefully to evaluate different alternatives and choose the optimal
financing structure for its needs. The US private placement also opened up
access to the capital markets for debt capital, thus strongly diversifying
the capital structure. The different maturities and tranches mean that VTG
could substantially reduce its future refinancing risk. With maturities of
up to 15 years, the Company has secured an advantageous interest rate level
for the overall package.
The extraordinary refinancing related expense of approximately EUR 18
million is essentially the result of amortizations due to the early
repayment of the existing loan, and will have a one-time negative impact on
earnings before tax, Group net profit, and earnings per share in the
current financial year 2011. This will not affect VTG AG's ability to
distribute dividends.
About VTG:
VTG Aktiengesellschaft is one of Europe's leading wagon hire and rail
logistics companies. The company has the largest private wagon fleet in
Europe. Globally, the fleet consists of some 50,000 wagons, with a focus on
tank cars and state-of-the-art high capacity freight cars and flat cars. In
addition to the hiring of wagons, the Group offers global tank container
transports and comprehensive multi-modal logistics services, mainly around
rail transport.
With the combination of its three interlinked divisions Wagon Hire, Rail
Logistics and Tank Container Logistics, VTG offers its customers a
high-performance platform for international transport of their freight. The
Group has many years of experience and specific expertise, in particular in
the transport of liquid and sensitive goods. Its customers include numerous
well-known companies from almost every industrial sector, for example the
chemical, petroleum, automotive, paper and agricultural industries.
In the financial year 2010, VTG generated revenue of EUR 629.4 million and
operating profit (EBITDA) of EUR 154.4 million. Via its subsidiaries and
affiliates the company, which has its head office in Hamburg, is mainly
present in Europe, Asia and North America. As at 31 December 2010, VTG had
999 employees worldwide in consolidated companies. Since June 2007, VTG AG
has been listed on the official Prime Standard market of the Frankfurt
Stock Exchange and also on the SDAX (WKN: VTG999).
Media contact:
Monika Gabler
Head of Corporate Communications
Telephone: +49 (0) 40 23 54-1341
Fax: +49 (0) 40 23 54-1340
Email: monika.gabler(at)vtg.com
Investor Relations contact:
Felix Zander
Head of Investor Relations
Telephone: +49 (0) 40 23 54-1351
Fax: +49 (0) 40 23 54-1350
Email: felix.zander(at)vtg.com
Further information at www.vtg.com
End of Corporate News
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Language: English
Company: VTG Aktiengesellschaft
Nagelsweg 34
20097 Hamburg
DeutschlandPhone: 040 2354 0
Fax: 040 2354 1199
E-mail: info(at)vtg.de
Internet: www.vtg.de
ISIN: DE000VTG9999
WKN: VTG999
Listed: Regulierter Markt in Frankfurt (Prime Standard);
Freiverkehr in Berlin, Düsseldorf, Hamburg, Hannover,
München, Stuttgart
End of News DGAP News-Service
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122951 05.05.2011
Datum: 05.05.2011 - 07:30 Uhr
Sprache: Deutsch
News-ID 33967
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Kategorie:
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