Interest margin drops considerably with successful capital increase

SAF-HOLLAND S.A.: Interest margin drops considerably with successful capital increase

SAF-HOLLAND S.A. / Key word(s): Banking Syndicate

24.02.2011 / 16:05

SAF-HOLLAND achieves improved financing conditions
Interest margin drops considerably with successful capital increase

Luxembourg, February 24th, 2011 - SAF-HOLLAND S.A., a leading supplier to the global truck and trailer industry, has reached an agreement with its bank syndicate on an amendment to the existing EUR 316 million credit facility. SAF-HOLLAND benefits from the amendment agreement through a considerably lower interest margin, among other things. The interest rate drops by 1.45 percentage points in the first step. Further reductions will take effect subject to the development of certain key debt figures. In addition, the banks have waived the opportunity of a simplified liquidation of securities in the course of the most recent adjustment to the credit agreement.

The new agreement is subject to a capital increase which is being planned by the company for a favorable capital market environment. The new conditions take effect when a capital increase with gross proceeds of at least EUR 90 million has been executed by the end of October 2011. 85 percent of that sum will be applied to the proportionate repayment of the loans. Gross proceeds beyond the sum of EUR 90 million will be applied to the repayment of the loans at a proportional rate of 50 percent.

'With the new conditions, the banks are acknowledging the successful restructuring and the positive business development of SAF-HOLLAND', says CFO Wilfried Trepels. 'Thanks to a substantial improvement in sales and earnings we can now also turn our attention to strengthening our capital structure.' The recovery in the global truck and trailer markets and the successful measures undertaken to increase efficiency have contributed to the rapid improvement in earnings in all of SAF-HOLLAND's business units in 2010. In addition to the further improvement in operating performance, management now seeks to achieve a higher equity ratio and better key debt figures. At an extraordinary Annual General Meeting in December 2010, the shareholders of SAF-HOLLAND approved an increase in authorized capital of up to 20,535,100 shares. Commerzbank and UniCredit Bank have been entrusted with the preparation and execution of the capital measure as joint bookrunners.

Company Profile:
With approximately EUR 420 million in sales and over 2,000 employees, SAF-HOLLAND S.A. is one of the world's leading manufacturers and suppliers of premium product systems and components primarily for trailers as well as trucks, buses and recreational vehicles. The product range encompasses axle and suspension systems, fifth wheels, coupling devices, kingpins, and landing legs. SAF-HOLLAND customers include the majority of large truck and trailer producers all over the world. The products are sold to Original Equipment Manufacturers (OEMs) and Original Equipment Suppliers (OESs) by means of a global service and distribution network and via aftermarket channels directly to the end users and service garages. SAF-HOLLAND has therefore established itself as one of the few manufacturers in its sector that is internationally positioned with an extensive product range and a broad service network. SAF-HOLLAND S.A. has been listed in the Prime Standard of the Frankfurt Stock Exchange since June 2007 and has been in the SDAX since December 2010.

Barbara Zanzinger
Hauptstraße 26
63856 Bessenbach

Phone +49 6095 301-617

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