Successful Business Year 2010By Heckler Koch Gmbh, PRNE
Wednesday, May 11, 2011
New Financial Architecture With Bond Over 295 Million Euros Issued
OBERNDORF, Germany, May 12, 2011 - Heckler & Koch GmbH in Oberndorf/N issued a bond with a volume
of 295 million euros on the international capital markets. The bond's purpose
is twofold: firstly to supersede the existing bond over 120 million Euros
placed by Heckler & Koch GmbH, which is due to mature on 15 July 2011, and
secondly, to use the available funds to acquire a payment in kind loan (PIK)
of the Heckler & Koch Beteiligungs GmbH, which is due in April 2013.
The bond was oversubscribed and was sold to a broad group of
European and U.S. investors. The note has an interest rate of 9.5% and runs
until 2018. Citigroup, London, led the placement as the sole global
coordinator and book runner, together with Close Brothers Seydler Bank AG,
Frankfurt, as joint lead manager.
Shareholders and the management of Heckler & Koch underline
that the clear financial structure created with the bond ensures long-term
stability. On this basis, further steps to optimize the group structure and
the accrual of further capital are planned, which is to reduce company debt
and the leverage of the group in the medium-term.
Rating agencies react positively
Moody's and Standard & Poor's have positively rated the
transaction by announcing rating upgrades to Caa1 (Moody's) respectively a
bond rating of CCC+ (S&P).
2010 with very good results
In 2010, Heckler & Koch GmbH again increased revenue and
profit, continuing the successful growth path of the past years. The revenue
increased by 5 percent compared to 2009 to 247 million Euros. Operative
earnings (EBIT) of 51.8 million Euros were about 30 percent above those of
the previous year. The EBITDA figure, important for all aspects of
refinancing, was 61 million Euros in 2010 and reached 24 percent of revenue.
The net gain after taxes obtained for 2010 is at 30 million Euros.
About Heckler & Koch
Heckler & Koch, in operation for more than 60 years, is a leading
European manufacturer of small arms with a premium-quality product portfolio
for NATO armed forces and their allies. Heckler & Koch designs, produces and
distributes small arms, including rifles, side arms, fully automatic weapons,
grenade launchers and a variety of other related products.
Important Regulatory Notice
This announcement does not constitute or form a part of any offer or
solicitation to purchase or subscribe for securities in the United States.
The Notes mentioned herein (and the guarantees thereof) have not been, and
will not be, registered under the United States Securities Act of 1933 (the
"Securities Act"). The Notes (and the guarantees thereof) may not be offered
or sold in the United States absent registration or an applicable exemption
from the registration requirements of the Securities Act. There will be no
public offer of the Notes (and the guarantees thereof) in the United States.
The offer and sale of the Notes will be made pursuant to an exemption
under the Prospectus Directive, as implemented in Member States of the
European Economic Area, from the requirement to produce a prospectus for
offers of securities. This announcement does not constitute an advertisement
for purposes of the Prospectus Directive.
This announcement is being distributed only to, and is directed at (a)
persons who have professional experience in matters relating to investments
who fall within Article 19(1) of the Financial Services and Markets Act 2000
(Financial Promotion) Order 2005 (the "Order") or (b) high net worth
entities, and other persons to whom it may otherwise lawfully be
communicated, falling within Article 49(1) of the Order (all such persons
together being referred to as "relevant persons"). The investments to which
this announcement relates are available only to, and any invitation, offer or
agreement to subscribe, purchase or otherwise acquire such investments will
be available only to or will be engaged in only with, relevant persons. Any
person who is not a relevant person should not act or rely on this document
or any of its contents. Persons distributing this announcement must satisfy
themselves that it is lawful to do so.
Neither the content of Heckler & Koch's website nor any website
accessible by hyperlinks on Heckler & Koch's website is incorporated in, or
forms part of, this announcement.
The distribution of this announcement into jurisdictions other than the
United States, the European Union and the United Kingdom may be restricted by
law. Persons into whose possession this announcement comes should inform
themselves about and observe any such restrictions. Any failure to comply
with these restrictions may constitute a violation of the securities laws of
any such jurisdiction.
HECKLER & KOCH GMBH, Heckler & Koch-Strasse 1, 78727 Oberndorf a.N.
Contact: Martina Tydecks, Telefon: +49(0)228-604-85-18,
Tags: Germany, Heckler & Koch Gmbh, May 12, Oberndorf