VTG to redeem €250 million notes following change-of-control event

By Sarah Lizee

Olympia, Wash., June 18 – VTG AG subsidiary VTG Finance SA gave notice of a change-of-control event and redemption of its €250 million undated resettable fixed-rate subordinated notes guaranteed by VTG AG.

On Dec. 19, Warwick Holding GmbH, part of an infrastructure fund managed by Morgan Stanley, increased its share in the voting rights of VTG AG to 70.63% from 29.01%. Accordingly, a change of ownership occurred on that date.

The issuer said that a negative rating event has occurred on the long-term obligations of VTG, and, consequently, a change-of-control event took place on June 17.

The effective date of the change of control will be Aug. 2.

The notes will be redeemed in whole on the effective date at par plus accrued interest up to but excluding the effective date.

VTG offers rail car hire, rail logistics and tank container logistics services. It is based in Hamburg, Germany.

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