Hengeler Mueller advises bank syndicate on IPO of Schaeffler AG and on refinancing of Schaeffler Holding

21. September 2015

Global automotive and industrial supplier Schaeffler on 21 September 2015 announced its intention to place up to 166 million new and existing non-voting common shares of Schaeffler AG with institutional investors and to list these shares on the regulated market (Prime Standard) of the Frankfurt Stock Exchange. Deutsche Bank AG and Citigroup Global Markets Limited acted as Joint Global Coordinators and Joint Bookrunners. Bank of America Merrill Lynch International Limited and HSBC Trinkaus & Burkhardt AG acted as Joint Bookrunners.

At the same time, Schaeffler Verwaltungs GmbH, a subsidiary of INA-Holding Schaeffler GmbH & Co KG, announced its intention to rearrange its external financial indebtedness in an aggregate amount of approximately EUR 3.6 bn in the context of the envisaged placement of Schaeffler AG shares. It is intended to reduce the financial indebtedness from the application of proceeds of the sale of Schaeffler AG shares and to fully refinance its remaining financial indebtedness. For this purpose, a syndicate consisting of four banks – Deutsche Bank AG, Citigroup Global Markets Limited, Bank of America Merrill Lynch International Limited as well as HSBC Trinkaus and Burkhardt AG – has committed to provide a term loan, a revolving credit facility and a bridge loan which will be taken out by the issuance of new bonds at the level of Schaeffler Holding at a later stage.

Hengeler Mueller is advising the banks on the IPO of Schaeffler AG and the refinancing of Schaeffler Verwaltungs GmbH. The Hengeler Mueller team includes partners Johannes Tieves (Financing/Capital Markets, Frankfurt) and Achim Herfs (Capital Markets/Corporate, Munich) as well as associates Anna Schwander, (Capital Markets/Corporate, Munich), Andreas Lischka, Sophie-Charlotte Bechtold (both Financing/Capital Markets, Frankfurt) and Philipp Dornbach (Capital Markets/Corporate, Düsseldorf).