Schaeffler on Tuesday announced a €12bn refinancing that will enable its family owners to stay at the helm of the debt-ridden group and pave the way for its merger with Continental, the rival car parts maker. Schaeffler said it had agreed with its five consortium banks to split the group’s debt into two tranches with maturities of 4½ and 6 years. The move buys time for Schaeffler to reduce the huge debt load resulting from its audacious takeover of the three-times larger rival Conti in the last year.

This entry was posted by Gwen Robinson on Wednesday, August 19th, 2009 at 4:48 and is filed under Capital markets, M&A. Tagged with continental, Schaeffler. Edit this entry.