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Allen & Overy advises Schaeffler on EUR2.5bn financing transaction

Allen & Overy has advised the global automotive and industrial supplier Schaeffler AG in connection with a credit agreement for a total of EUR 2.5 billion.

Besides an increase of the Group’s revolving credit facility to EUR 2.0 billion, with maturity extended to November 2027 (and an extension option for up to two further years), the credit agreement includes a EUR 500 million term loan with a five-year maturity to fund the acquisition of the Ewellix Group. This new credit agreement secures long-term financial flexibility for the Schaeffler Group.

As a sign of the Schaeffler Group’s strong commitment to achieving its announced sustainability targets, the margins of the credit agreement have been linked to two selected ESG targets. The Schaeffler Group has set itself a total of eight company-wide sustainability targets, two of which – reducing CO2 emissions from its own production (Scope 1 and 2) and reducing the occupational accident rate – will now have a direct impact on the margins of the new credit agreement.

The company signed the loan agreement with an international consortium of 14 banks.

The Allen & Overy team was led by partner Thomas Neubaum and comprised counsel Dr Jan-Hendrik Bode, senior associate Elke Funken-Hötzel as well as associate Anastasiya-Evangelina Wiegand (all Banking & Finance, Frankfurt).

Schaeffler was advised inhouse by general counsel M&A, Corporate & Finance Dr Alexandra Zech and legal counsel Juliane Wittig.