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[January 2004]
SGL Carbon Corporate Bond Successfully Placed
SGL Carbon (Wiesbaden, Germany) announced on 28 January 2004 the pricing of a €270 million corporate bond to be issued via its wholly owned subsidiary SGL Carbon Luxemburg SA. Because the net proceeds from the capital increase were higher than expected, the size of the bond issue could be reduced to €270 million. The bond will be solely denominated in € due to the high demand. The notes will mature in February 2012 and will bear interest at a rate of 8.5%.
The bond is part of a comprehensive finance package approved by the Executive Committee and the Supervisory Board which was published on 5 December 2003. The refinancing is intended to strengthen the company's equity base and provide for its financing in the long term. In addition to the bond, the financing package consists of a capital increase of approximately €245 million and a new syndicated loan facility of approximately €330 million.
The capital increase was approved by a substantial majority of shareholders at an EGM on 15 January 2004. The capital increase will raise net proceeds of approximately €245 million instead of the initially scheduled €200 million. The subscription period for the 2-for-3 capital increase ends on 5 February 2004. The comprehensive financing package is expected to be completed by early February 2004.
www.sglcarbon.de
ENDS