18 June 2009

Comprehensive refinancing successfully completed

HeidelbergCement has completed a comprehensive refinancing of its existing debts involving more than 50 international lenders. The term of the new syndicated loan agreement totalling EUR 8.7 billion runs until 15 December 2011. Acquisition facilities for the acquisition of Hanson in 2007 and other bilateral credit lines and loans have been rolled in under a new facility, and the existing covenants have been adjusted to a level reflecting the change in the economic environment.

“With the successful refinancing of our bank debt, we have secured our financing structure which, coupled with sufficient liquidity , will provide us with stable base to confront the extremely challenging economic environment,” comments CEO Dr. Bernd Scheifele. Negotiations with the banks were led by CFO Dr. Lorenz Näger. “The exceptional economic conditions made the negotiations very lengthy. In the end, however, we found a solution that considers the interests of everyone involved,” says Dr. Näger.

With the refinancing behind it, HeidelbergCement is now in a good position to examine other options to strengthen its balance sheet. The company is also working consistently to further deleverage. In addition to strict cost management and significant capital expenditure reduction, there is a clear focus on cash flow. HeidelbergCement will also continue to pursue its two to three-year programme of divesting non-strategic business units.

HeidelbergCement is one of the largest building materials manufacturers in the world. The company employs a workforce of roughly 60,000, and has leading market positions in North America and the countries of Central, Northern and Eastern Europe, as well as the UK. Other strategic markets include the fast-growing regions of Asia, including China, Indonesia and India, as well as Australia.

1,866 characters

Andreas Schaller

Group Spokesman, Director Group Communication & Investor Relations
+49 6221 481 13249
+49 6221 481 13217
HeidelbergCement AG
Berliner Straße 6
69120 Heidelberg