As a mark of how well Heidelberg is doing at reorganizing itself it has redeemed a sum of around €64.5 million from its high-yield bond. This is due to run to 2018 and has a current volume of around €115 million with a coupon of 9.25 percent.
This bond was issued in 2011 with an original volume of some €300 million as part of Heidelberg’s strategy of using long-term capital market instruments to diversify the company’s financing. Heidelberg has been gradually repaying this sum, with the latest repayment being made from cash on hand. This will save Heidelberg some €6 million in annual interest, further helping to reduce its debt burden and to strengthen its financial position.
Dirk Kaliebe, Heidelberg’s CFO, said the company was continuously working on improving is finances, adding: “Thanks to the annual savings, we have succeeded in giving the company greater financial scope for making acquisitions and investing in growth and innovation.”