18 October 2007
HeidelbergCement issues successfully for private investors
This press release does not constitute either an offer to sell nor an invitation to buy HeidelbergCement securities. This press release and the information contained in it may not be forwarded to or distributed within the United States. Nothing in this Press Release constitutes an offer of securities for sale in the United States or any other jurisdiction where it is unlawful to do so. The securities of HeidelbergCement have not been, and will not be, registered under the U.S. Securities Act of 1933 or the Securities Laws of any state of the U.S. and the securities may not be offered or sold within the U.S. or to, or for the account or benefit of U.S. persons.
HeidelbergCement has taken advantage of the re-enhanced conditions on the capital markets to successfully issue a new euro bond over EUR 480 million via its subsidiary HeidelbergCement Finance B.V.
The bond, which matures on 4 January 2018 and has a first coupon payment on 4 January 2009 (long first coupon), has a coupon of 5.625% and the benefit of the unconditional, irrevocable guarantee given by HeidelbergCement AG.
The issue will be rated Baa3, BBB- and BBB- by Moody’s, Standard & Poor’s and Fitch respectively and the proceeds generated by the bond issue will be used to refinance existing debts.
The placement occurred during the last two weeks through Commerzbank Aktiengesellschaft, Landesbank Baden-Württemberg and Landesbank Hessen-Thüringen acting as Joint-Bookrunners of the issue. The regional focus of the transaction was in Germany with over 90% of the issuing volume.
“The bond was very well received by private investors, for whom the public offer was primarily intended. We will use the proceeds generated by the bond issue for debt reduction,” underlined Dr. Bernd Scheifele, Chairman of the Managing Board of HeidelbergCement.
HeidelbergCement is the global market leader in aggregates and prominent in the field of cement, concrete and other downstream activities, making it one of the world’s largest manufacturers of building materials. It employs some 70,000 people at 2,800 locations in 50 countries.