NORMA Group SE places promissory note valued at EUR 209 million
Maintal, Germany, 19 December 2014
NORMA Group, a global market and technology leader in engineered joining technology, has issued a promissory note valued at EUR 209 million in total and thus increased the flexibility of its financing and maturity structure. The issue volume of EUR 150 million that was originally planned was heavily oversubscribed and therefore increased to EUR 209 million.
With this transaction, loan tranches could be subscribed to in euros as well as U.S. dollars, for the first time. The U.S. dollar tranche accounted for 128.5 million U.S. dollars or roughly 50 percent of the total volume. The promissory note was allocated with terms of three, five, seven, and ten years at fixed and variable interest rates. The transaction was managed by Helaba Landesbank Hessen-Thüringen Girozentrale (Helaba) and Landesbank Baden-Württemberg (LBBW). The funds from the promissory note will be used, among other purposes, to cover medium-term financing of the acquisition of National Diversified Sales, Inc. (NDS) in the United States in October 2014. Helaba and LBBW both provided bridge financing in connection with the acquisition of NDS. (See press release dated 8 October 2014: NORMA Group to acquire specialised water management company National Diversified Sales in the USA)
“The balanced repayment profile of between three and ten years, but also the U.S. dollar share of nearly 50 percent enables us to continue to design our financing to be more flexible and reduce currency risks and total financing costs,” says Dr. Othmar Belker, Chief Financial Officer of NORMA Group. “The threefold oversubscription and the successfully placed ten-year tranche with a volume of EUR 45 million at a fixed interest rate is clear evidence of the long-term confidence investors have in our business model.”
NORMA Group had already placed an initial promissory note valued at EUR 125 million in July 2013.
Please find more information on NORMA Group at www.normagroup.com. Press photos are available from our platform on www.normagroup.com/Images.