Künzelsau/’s-Hertogenbosch. The Würth Group successfully issued a CHF 225 million bond in the Swiss capital market through its subsidiary Würth Finance International B.V.
The bond with a term of six years carries a coupon of 3.875 percent p.a. and is secured by joint unconditional and irrevocable guarantees of Adolf Würth GmbH & Co. KG as well as Reinhold Würth GmbH. The bond is expected to be rated A by Standard & Poor’s and A minus by Fitch Ratings.
The bond was issued to private and institutional investors in Switzerland as well as Germany and Austria, with Credit Suisse and BNP Paribas acting as lead managers. The transaction has been received well in the market.
An application for the listing on the SIX Swiss Exchange will be filed; the payment date of the issuance will be 3 August 2009.
The transaction further strengthens the solid funding structure of the Würth Group and allows the early long-term refinancing of the EUR-150-million bond payable on 31 March 2010.
Joachim Kaltmaier, Member of the Central Managing Board of the Würth Group: “The successful issue of the bond is evidence of the high degree of trust which the Würth Group, as a family business, possesses in the capital market.”
In accordance with common practice in the Swiss capital market, the Würth Group committed itself to reporting on the business development in the first half of 2009 only two weeks after the closing of the bond issue’s subscription period on 17 August 2009 instead of releasing the report in July as usual.
The Würth Group is the world’s market leader in its core business, the trade in assembly and fastening material. It currently consists of more than 400 companies in 86 countries and has over 60,000 employees on its payroll. Approximately 30,000 of them are permanently employed sales representatives. In 2008, the Würth Group attained a sales volume of EUR 8.82 billion.
In the core business, the Würth Line, the sales range for trades and industry comprises over 100,000 products: From screws, screw accessories and anchors via tools to chemical technical products and personal protection equipment.
274 companies operate under their own name. These so-called Allied Companies operate in diversified business fields and markets adjacent to the core business. They sell for instance products for DIY stores, material for electrical installations, electronic components (e.g. circuit boards), financial services and solar modules. They generate approximately 42 percent of the Würth Group’s sales volume.
Würth Finance International B.V. is the financial company of the Würth Group based in Amsterdam, the Netherlands.