SAF-HOLLAND secures financing until 2014
Flexibility and liquidity secured over the long term
New conditions agreed
Agreement confirms the competitiveness of the Company
Costs in operating business substantially lowered
Luxemburg November 29, 2009 - SAF-HOLLAND has reached agreement with its
banks on a restructuring and extension of the existing EUR 316 million
credit line until 2014. Negotiations have been successfully completed. With
this new agreement, the Company improves its financial strength and secures
flexibility and sufficient liquidity for its long-term growth course.
SAF-HOLLAND is now equipped to participate in the anticipated upswing in
the truck and trailer market. The financing takes into consideration the
clear changes in the framework conditions that have occurred since mid-2008
and creates a solid foundation for a secure future.
'We have reached a good agreement with the banks - one that puts the
Company on solid financial footing and, most importantly, gives us the room
we need to continue to pursue our strategic goals. At the same time, the
new financing confirms the degree of confidence that the banks have in our
outstanding market position and in our competitiveness. Our prospects are
good: We are seeing initial signs of a revival in the markets.
SAF-HOLLAND as a global supplier of quality systems and components for the
commercial vehicle industry is in an excellent position to benefit to an
above-average degree from a recovery', says Wilfried Trepels, CFO of
The new financing consists of the following key elements:
The existing financing with a credit line of EUR 316 million which has
been in place since February 2008 will be extended until September 2014.
The first repayments of principal will be made in February 2012.
The changed market and risk situation has been taken into account with
the new conditions.
The agreement gives the Company additional liquidity and flexibility. In
exchange, the banks obtain enhanced security in the event of pending
illiquidity or imminent insolvency. The new contract is subject to approval
from an extraordinary Annual General Meeting of
In summary, the Company thus has a solid financial basis to enable growth
and to expand its position worldwide. The developments of the last nine
months have shown that SAF-HOLLAND is well positioned. In difficult market
conditions, it turned the corner on earnings in the third quarter of 2009
and generated an operating cash flow in the amount of EUR 29.1 million in
the first nine months of the year.
The new financing is part of a comprehensive restructuring.
SAF-HOLLAND reacted to the market collapse that arose as a result of the
global economic crisis at an early stage and has created a solid foundation
for a secure future. The trailer market now having stabilized and the first
signs of a recovery in the truck market are shown. The restructuring
measures are expected to result in savings in personnel and non-personnel
expenses of EUR 62 million by the end of 2009. To that end, locations will
be consolidated and capacities reduced. Moreover, inventory reductions have
led to a considerable decrease in our net working capital need
With more than EUR 800 million in sales in 2008 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 workshops. SAF-HOLLAND has
therefore established itself as one of the few manufacturers in its sector
that is internationally positioned with an extensive
SAF-HOLLAND Group GmbH
Phone +49 6095 301-617
29.11.2009 Financial News distributed by DGAP. Media archive at www.dgap-medientreff.de and www.dgap.de
Head of Investor Relations, Corporate and ESG Communications
Tel. +49 (0)6095 301 803