Würth Group Borrows New Long-term Funds on the Capital Market
Amsterdam/Künzelsau/Ramsey. The Würth Group has made use of the ongoing attractive conditions on the capital markets to take up long-term funds:
Würth Finance International B.V. based in Amsterdam/Netherlands issued a bond of EUR 100 million under the lead management of Landesbank Baden-Württemberg on Friday, 19 May 2006. The bond has a period of seven years and an interest rate of 4.25 percent is collateralized by the unconditional and irrevocable guarantees of Adolf Würth GmbH & Co. KG in Künzelsau/Germany as well as by Reinhold Würth GmbH in Künzelsau/Germany. The international rating agencies Standard & Poor’s and Fitch Ratings have issued a rating A/outlook stable for the bond. The issue of securities was accepted very positively by the capital market. On account of the high credit worthiness of the Würth Group, particularly institutional investors were found.
In addition, the Würth Group of North America Inc. located in Ramsey/USA borrowed USD 50 million from institutional investors in the USA with the help of private placements (USPP) as early as on 12 May 2006. The period of this structured transaction is 13 years. The coupon for the first three years is 4.55 percent (semi-annual coupon dates) and for the ten years to follow at 5.62 percent plus the credit spread of the Würth Group applicable in three years. The USPP is not traded at the stock market but placed directly with the investors.
The funds from the bond and the private placement are earmarked for repaying a bond which is due on 21 June 2006 and which originally amounted to EUR 150 million as well as for financing future growth. The Würth Group is represented in the capital market with four bonds and two US private placements.
Würth Finance International B.V. is the financial company of the Würth Group. The Würth Group of North America Inc. is the holding and financial service company for the US market.
In the business year 2005, the Würth Group achieved new record sales of EUR 6.91 billion and thus increased the operating result compared to the previous year by 15 percent to almost EUR 455 million (previous year: EUR 395 million). The largest trading company worldwide based in Künzelsau has over 358 operative companies in 82 countries.