Heidelberg has made changes to its financing, setting up a new syndicated credit line with improved conditions with its banking group.
This gives Heidelberg a new credit line with a higher total of €320 million and a term that runs till March 2023. This will be used to support Heidelberg’s day-to-day operational business as well as to help develop new digital business models, such as the newly established subscription portfolio. It also gives the company more flexibility to repay a proportion of the existing 8% bond due in 2022 ahead of time, allowing for more advantageous conditions. Heidelberg is planning to reduce its financing interest by close to half to around €20 million in the medium term.
This new credit line has been agreed with a broad-based banking consortium made up of six main lenders – Bank of China, BNP Paribas, Commerzbank, Deutsche Bank, HSBC, and LBBW – together with DZ Bank, IKB, NIBC, and Saar LB.
Dirk Kaliebe, CFO of Heidelberg. “The financial basis for our new digital technologies and business models has been secured for the long term. We have numerous options at our disposal for driving forward our growth strategy. At the same time, we are able to further reduce interest costs by optimizing the financial framework.”
Heidelberg’s financial structure is now made up primarily of this new €320 million credit line running until March 2023, a convertible bond for €59 million that runs till March 2022, a bond for €204 million that runs till May 2022 but can be redeemed prematurely, and an EIB loan for €100 million that runs till 2024. Heideberg believes that this remains within its previously announced three pillar strategy of using a mixture of credit facility, capital market, and special financing.