Schaeffler announces successful syndication of financing package for tender offer for Vitesco Technologies

Schaeffler has today successfully closed the syndication of a multi-billion-euro financing package. The facilities will be used to finance the ongoing tender offer for Vitesco, transaction-related costs and potential refinancing needs of Vitesco. The facilities have a tenor of twelve months, with the option of extension.

On October 9, 2023, Schaeffler announced a public tender offer for all outstanding shares in Vitesco to create a leading Motion Technology Company. The combined business will have four focused “pure play” divisions generating significant strategic advantages. This includes a combined division of E-Mobility with significant growth potential.

The financing package for the tender offer was fully underwritten by Bank of America, BNP Paribas, Citibank and Deutsche Bank, with all four banks acting as bookrunners. In addition to existing relationship banks of Schaeffler, new international tier-1 banks participated in the syndication.

Claus Bauer, CFO of Schaeffler AG, said: “The extremely positive resonance and commitment from existing relationship banks as well as new international banks in the syndication process demonstrates the convincing support for this transaction and its compelling strategic rationale. Both companies will be stronger together.”

The Schaeffler Group currently holds “BB+” ratings from S&P and Fitch and a “Baa3” rating from Moody’s. The outlook of all three agencies on the ratings is stable.