Vaillant announces successful EUR625m Loan Syndication and strong start to 2004
Vaillant Hepworth Group, one of Europe's largest heating technology businesses, today announces the successful syndication of its five-year EUR625m term and revolving facilities. The purpose of the facilities was to refinance EUR226m of subordinated debt and EUR351m of senior debt, providing a EUR325m five-year term loan and a EUR300m revolving credit facility. The committed but undrawn facilities allow for working capital fluctuations and further acquisitions to reinforce the Group's stated objectives of achieving leadership positions in all countries in which it operates. The Mandated Lead Arrangers were Commerzbank Securities, HSBC Bank plc, and the Royal Bank of Scotland plc. “The 60% oversubscription and the fact that each of the eighteen banks we invited has participated in the new facility is a real vote of confidence in the Company,” said Michel Brosset and Claes Göransson, joint Managing Directors of Vaillant Hepworth Group. Claes Göransson further added ”We have doubled the size of the Company since 2000 with revenues up from EUR0.9bn to EUR1.8bn and at the same time have substantially increased the value of the company. The refinancing marks the end of the integration period post the acquisition of Hepworth plc in March 2001 and the Company now has a firm base on which to build further substantial revenue and value growth.” In the first five months of 2004 net revenues were EUR709m, EUR47m (up 7% on a like for like basis) above prior year. EBIT was EUR45m, EUR7m (18%) better than the prior year. Strong sales performances in Germany and Eastern Europe as well as the benefits of the Group's strategic sourcing and synergistic initiatives were the drivers of the results. The family owned Vaillant Hepworth Group is a worldwide leading group of companies in the field of domestic heating and comfort. The Group generates annual revenues of EUR1.8bn and last year produced record profits (EBIT) of EUR169m. Vaillant is focused on heating technology, building products and household products. The Group develops and produces innovative products and services and supplies them to customers in more than 100 countries all over the world. This family owned firm is headquartered in Remscheid, Germany and employs over 9,300 people. Contact Vaillant Hepworth Group Ebrulf Zuber Corporate Communications 42850 Remscheid Germany Tel. +49 (0)2191 18-2754 Fax: +49 (0)2191 18-2895 e-mail: ebrulf.zuber@vaillant.de www.vaillant-hepworth-group.com
