May 14, 2011

Heckler & Koch Issues Bond, Plans Restructure

Published: 13 May 2011 10:40

BONN - Small-arms manufacturer Heckler & Koch Group has issued a bond worth 295 million euros ($419.2 million) that is part of a restructuring and an effort to reduce debt.

The bond's interest rate is 9.5 percent, and it will be due in 2018.

The net proceeds will be used to refinance Heckler & Koch's outstanding notes, purchase all payment-in-kind loans of Heckler & Koch Beteiligungs held by third parties, and pay related transaction fees and expenses. The notes were rated Caa1/CCC+ by Moody's and S&P, respectively.

The company, headquartered in Oberndorf, Germany, plans to improve the group's structure and capital flow while reducing debt.

Heckler & Koch also plans a flotation on the Frankfurt and London stock markets in the medium term.

In 2010, the company increased its sales by 5 percent to 247 million euros and achieved earnings before interest and taxes of 51.8 million euros, an increase of about 30 percent compared with 2009. The net result was 30 million euros.

No comments:

Post a Comment