Schaeffler successfully issues bonds to finance the acquisition of Vitesco shares

Schaeffler successfully placed corporate bonds with a total volume of 1.1 billion euros with international investors. The bond placement was carried out under the current debt issuance program of Schaeffler AG and comprises two tranches. The proceeds of the issuance will mainly be used for the refinancing of the previous bridge financing of the tender offer for all outstanding shares of Vitesco Technologies Group which was successfully completed on January 5, 2024.

The new bond issuance is scheduled to be settled on January 15, 2024. The bonds will be listed on the regulated market of the Luxembourg Stock Exchange. BNP Paribas, BofA Securities, Citigroup, and Deutsche Bank, which have already advised the syndication process for bridge financing, acted as Joint Active Bookrunners for the bond placement.

Claus Bauer, Chief Financial Officer of Schaeffler AG responsible for Finance and IT, said: “By issuing these bonds, we are securing the financing for the acquisition of the Vitesco shares for the long term at an early stage. The above-average demand and great trust of investors in Schaeffler impressively demonstrate that they value Schaeffler’s financial stability and support the corporate merger with Vitesco.”

On January 5, 2024, the public tender offer for all outstanding shares of Vitesco was closed and the payment of the consideration of 94 euros per share having been offered to Schaeffler within the acceptance period was executed. As a result, Schaeffler secured 29.88 percent of the Vitesco shares. The total offer consideration amounted to about 1.1 billion euros. Following the completion of the tender offer and in combination with the 49.94 percent stake held by IHO Holding, the strategic management holding company of the Schaeffler family (attributed to Schaeffler due to an acting in concert agreement), Schaeffler holds 79.82 percent of Vitesco’s share capital and voting rights.