Heidelberger Druckmaschinen AG: Heidelberg optimizes financing structure - basis for investment in future growth

New credit line that runs till 2023 creates flexibility and long-term
planning certainty for the company's digital transformation

Aim to considerably reduce financing costs

Heidelberger Druckmaschinen AG (Heidelberg) has further optimized its financing structure and agreed a new syndicated credit line with improved conditions with its banking group. By taking out the credit line with a higher total of EUR320 million and a term that runs till March 2023, the company is creating financial flexibility and longer-term planning certainty. Besides supporting the day-to-day operational business of the global organization, the new credit facility underpins the strategy of further expanding new digital business models, such as the newly established subscription portfolio.  
 
"This refinancing is another sign of the banks' confidence in our strategic roadmap to a digital future," said Dirk Kaliebe, CFO of Heidelberg. "The financial basis for our new digital technologies and business models has been secured for the long term. We have numerous options at our disposal for driving forward our growth strategy. At the same time, we are able to further reduce interest costs by optimizing the financial framework."
 
Interest costs to be reduced to around EUR20 million
The new credit line also gives Heidelberg more flexibility to pay off a proportion of the existing 8% bond due in 2022 ahead of time and under more advantageous conditions. Heidelberg is planning to reduce its financing interest by close to half to around EUR20 million in the medium term.
 
Further strengthening the maturity profile within the framework of the three-pillar strategy
Due to the newly syndicated credit line, Heidelberg has further improved its financing structure in terms of the maturity profile and conditions. The financial framework thus consists primarily of the newly syndicated credit line for EUR320 million that runs till March 2023, a convertible bond for EUR59 million that runs till March 2022, a bond for EUR204 million that runs till May 2022 but can be redeemed prematurely, and an EIB loan for EUR100 million that runs till 2024. Heidelberg has therefore agreed a financial framework for its business development that is very solid but also flexible. The diversified financing structure is still based on the three pillars of credit facility, capital market, and special financing.
 
The broad-based banking consortium behind the credit facility comprises the six main lenders Bank of China, BNP Paribas, Commerzbank, Deutsche Bank, HSBC, and LBBW. Completing the consortium are DZ Bank, IKB, NIBC, and Saar LB.
 
For additional details about the company and image material, please visit the Press Lounge of Heidelberger Druckmaschinen AG at www.heidelberg.com.
 
Heidelberg IR now on Twitter:
 
Link to the IR Twitter channel: https://twitter.com/Heidelberg_IR
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Other dates:
The Annual Accounts Press Conference for 2017/18 is scheduled for June 12, 2018.

Contact:
Heidelberger Druckmaschinen AG

Corporate Public Relations
Thomas Fichtl
Phone: +49 (0)6222 82-67123
Fax: +49 (0)6222 82-67129
E-mail: thomas.fichtl@heidelberg.com

Investor Relations
Robin Karpp
Phone: +49 (0)6222 82-67120
Fax: +49 (0)6222 82-99 67120
E-Mail: robin.karpp@heidelberg.com

Important note:
This press release contains forward-looking statements based on assumptions and estimations by the Management Board of Heidelberger Druckmaschinen Aktiengesellschaft. Even though the Management Board is of the opinion that those assumptions and estimations are realistic, the actual future development and results may deviate substantially from these forward-looking statements due to various factors, such as changes in the macro-economic situation, in the exchange rates, in the interest rates and in the print media industry. Heidelberger Druckmaschinen Aktiengesellschaft gives no warranty and does not assume liability for any damages in case the future development and the projected results do not correspond with the forward-looking statements contained in this press release.