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Allen & Overy advises IHO Verwaltung on EUR 3.1 bn refinancing


23 May 2019

Allen & Overy is advising IHO Verwaltungs GmbH (IHO Verwaltung) in connection with a comprehensive refinancing involving the placement of new bonds and an amendment and extension of the company’s credit facilities. IHO Verwaltung is part of IHO Holding, a group of strategic management holding companies owned by the Schaeffler family.

As part of the refinancing, IHO Verwaltung successfully placed senior secured PIK toggle notes in an aggregate principal amount of EUR 2.1 billion equivalent with institutional investors.  The issue consists of two euro tranches and two US-dollar tranches with maturities of six, eight and ten years.  The bonds will be listed on the EuroMTF market of the Luxembourg Stock Exchange.

The refinancing also includes a two-year extension of IHO Verwaltung’s existing EUR 1.0 billion credit agreement with four major international banks.  As part of the extension, the term loan under the credit agreement is reduced from EUR 750 million to EUR 600 million and the revolving credit facility is increased from EUR 250 million to EUR 400 million.

IHO Verwaltung will use the proceeds from the issuance of the new bonds, together with cash on hand, to redeem approximately EUR 2.4 billion equivalent of its existing bonds and to pay associated redemption costs. The objective of the refinancing is to extend the company’s debt maturity profile and to reduce financial indebtedness.

The Allen & Overy team advising with respect to the bonds is being led by partner Marc Plepelits and senior associates Rita Nicole Thomas, Martin Schmidt (all US Corporate Finance) and Nadine Kämper (Capital Markets, all Frankfurt). The team advising on the amendment and extension of the credit facilities is being led by partner Dr Walter Uebelhoer, senior associate Elke Funken-Hötzel and Counsel Dr. Ilja Baudisch and includes associates Dr Rauni Ahammer and Louisa Drewniok and senior transaction lawyer Anastasiya-Evangelina Wiegand (all Banking and Finance, Munich and Frankfurt). 

Partners Brian Jebb (Employment & Benefits, New York), Thomas Neubaum (Banking and Finance, Frankfurt), Marc Ponchione (ICM Regulatory, Washington D.C.), Dr Knut Sauer (Capital Markets) and Dr Heike Weber (Tax, all Frankfurt), counsels Maria Christopher Bell (Environmental/Regulatory, New York), Jens Nollmann (Capital Markets), Dr Udo H Olgemöller (Public Law) and Dr Katharina Stüber (Corporate, all Frankfurt), associates Tracy French (Environmental/Regulatory), John Hibbard (Tax, both New York), Dr Anna Opel (Public Law, Frankfurt) and Sherry Qian (ICM Regulatory, Washington D.C.) and tax specialist Tobias Eggert (Tax, Frankfurt), also advised on the transaction.

IHO Verwaltung is being advised internally by Dr Alexandra Zech (legal counsel, Herzogenaurach).




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