Schaeffler enters into €1 billion bank loan, €1.3 billion revolver

By Tali Rackner

Norfolk, Va., July 19– Schaeffler AG entered into a new five-year loan agreement comprising of a €1 billion bank term loan and a €1.3 billion revolving credit facility, according to a press release.

The agreement has a five-year term and may be extended.

Initial interest on the term loan is equal to Libor plus 170 basis points.

Proceeds will be used to fully prepay the remainder of the existing institutional term loans of about €400 million maturing in May 2020 and to fully redeem the company’s €600 million of 4¼% senior secured euro notes due 2018.

Schaeffler is a Herzogenaurach, Germany-based supplier of automotive and industrial components.

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