18/05/18

Würth Group successfully issues EUR 500 million benchmark bond

Künzelsau / ‘s-Hertogenbosch. The Würth Group took advantage of the favorable conditions in the capital markets to acquire long-term funds and very successfully issued a EUR 500 million euro bond in the market on 15 May 2018 through its financial company Würth Finance International B.V.

The bond with a term of seven years carries an interest coupon of 1.00 percent p.a. and is secured through an unconditional and irrevocable guarantee of Adolf Würth GmbH & Co. KG. The rating agency Standard & Poor’s has assigned the bond an "A, outlook stable" rating.

The bond was issued in cooperation with the joint lead managers BNP Paribas, DZ Bank, Landesbank Baden-Württemberg and UBS. After its announcement the day before and the resulting positive market response, the transaction could be concluded within just a few hours. Based on the reoffer price of 99.745% the notes have a yield to maturity of 1.0380% p.a.

The proceeds of the issue strengthen the Würth Group's long-term funding and liquidity basis for further growth of the Group. The average term of the outstanding financial liabilities of the Würth Group has been extended considerably. After the repayment of the EUR 500 million with an interest rate of 3.75% due on 25 May 2018, the average interest rate for interest-bearing debt of Würth will be reduced further.

About the Würth Group

The Würth Group is the world's market leader in its core business, the trade in assembly and fastening materials. It currently consists of more than 400 companies in over 80 countries with more than 75,000 employees on its payroll. Approximately 32,000 of those employees are salaried sales representatives.

In the Group's core business, the Würth Line, the sales program for the trades and industry comprises more than 125,000 products: from screws, screw accessories and anchors to tools, technical chemicals and personal protective equipment.

The Allied Companies of the Würth Group, which either operate in business areas related to its core business or in diversified business areas, round off the range by offering products for DIY stores, material for electrical installations, electronic components such as circuit boards, and financial services. They account for more than 40 percent of the Würth Group's sales volume.

Legal disclaimer

This press information neither constitutes an offer for sale nor a solicitation of an offer to purchase securities nor an invitation to otherwise purchase securities. It does further not create the basis for a contract on the purchase or subscription of securities. This press release neither constitutes an offer for sale nor a solicitation of an offer addressed to any person in any jurisdiction where it is unlawful for such an offer or solicitation to be addressed.

Securities may be offered or sold in the United States of America only after prior registration or without prior registration pursuant to an exemption from the registration requirements of the U.S. Securities Act of 1933 (“Securities Act”), as in effect at any given time. The securities referred to in this press release have not been nor will they be registered under the Securities Act. There has not been nor will there be a public offering of the securities referred to in this press release in the United States of America.

Potential investors are requested to make their investment decisions regarding the securities referred to in this press release solely based on the information provided in the prospectus as approved and published by the Commission de Surveillance du Secteur Financier, Luxemburg (“CSSF”). The prospectus is available free of charge from Würth Finance International B.V. or on the website www.wuerthfinance.net.