Continental places bonds with investors
Continental AG has placed a euro-denominated bond totaling $1 billion euros with qualified investors in Germany and abroad.
"With this, the company has further improved its debt maturity profile," say Continental officials.
The notes have a term of seven years. They will be issued by Conti-Gummi Finance B.V. Interest will be paid semi-annually in arrears.
"We see this as a signal that investors have confidence in Continental and would regard this as an attractive investment," says Continental CFO Wolfgang Schafer. "We will use the net proceeds in the same way as the proceeds of (our) first bond in July -- namely for the partial prepayment of bank loans."