SAF-HOLLAND S.A.: Financing secured until 2014

SAF-HOLLAND S.A. / Banking Syndicate

29.11.2009 

Dissemination of an Ad hoc announcement according to § 15 WpHG, transmitted by
DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.

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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.

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 original trustee structure demanded by the banks has been
dropped. 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 SAF-HOLLAND
S.A.

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 has now 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.

In the course of the restructuring process, the Board of Directors of 
SAF-HOLLAND S.A. resolved to reduce the size of the Board. As a
consequence, Martin Schwab will step down as a member of the Board on
completion of the financing agreement.



Luxemburg, 29. November 2009
Board of Directors


Contact:
SAF-HOLLAND Group GmbH
Barbara Zanzinger
Hauptstraße 26
63856 Bessenbach

Phone +49 6095 301-617
barbara.zanzinger@safholland.de




29.11.2009  Financial News distributed by DGAP. Media archive at www.dgap-medientreff.de and www.dgap.de

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Language:     English
Company:      SAF-HOLLAND S.A.
              68-70, boulevard de la Pétrusse
              L-2320 Luxembourg
              Luxemburg
Phone:        +49 6095 301 - 0
Fax:          +49 6095 301 - 260
E-mail:       info@safholland.de
Internet:     www.safholland.com
ISIN:         LU0307018795
WKN:          A0MU70
Listed:       Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
              in Berlin, Düsseldorf, München, Hamburg, Stuttgart
 
End of News                                     DGAP News-Service
 
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