Financial News

05/May/2011

DGAP-News: VTG Aktiengesellschaft: VTG's new funding structure secures long term growth perspectives



VTG Aktiengesellschaft / Key word(s): Capital Reorganisation

05.05.2011 / 07:30

Press Release

VTG's new funding structure secures long term growth perspectives

- Successful US private placement

- New syndicated loan

- Strong basis for further strategic growth through new funding structure

Hamburg, 5 May 2011: VTG Aktiengesellschaft (WKN: VTG999) bases its new funding structure on a US private placement and a syndicated loan facility. With these measures, the company is orienting its fundamental financing on its long term business model. At the same time, VTG will now have substantial means at its disposal within the next years, enabling it to continue to pursue its growth strategy of the last few years.

Dr. Kai Kleeberg, Chief Financial Officer of VTG AG, assesses this move as follows: 'With this newly arranged financing, we have succeeded in laying the groundwork for further growth at VTG. We can now continue to take advantage of the available market opportunities, which would no longer have been possible under the old funding structure. We were able to combine an attractive capital markets product with solid bank financing at very good conditions. This combination of different financial instruments matches our business model, as it is highly expandable and will allow us to be distinctly more agile and powerful in our future activities', adding that 'Moreover, the significant degree of interest and trust we have met tells us that our lenders are convinced by the stability and future potential of VTG's business model'.

In VTG's new funding structure, a US private placement and a syndicated loan are funding components that are ideally suited to VTG's need. In total, the two financing instruments together make approximately EUR 930 million available to the company in the form of loans and credit lines. The existing syndicated loan in the amount of EUR 640 million, obtained in 2005 and slightly amended in 2007, is thus redeemed to give way to an open financing platform in which the US bond issue represents the long term basic financing and the flexible credit lines support the funding of future investments. In addition, there is now the possibility to create more room for expanding into additional financial instruments.

The US private placement has been structured and prepared over the last few months with the support of Deutsche Bank and Bank of America Merrill Lynch. VTG was able to convince institutional investors in the insurance and pension fund sectors of the company's business model and strategy. The transaction was many times oversubscribed. In total, investors placed EUR 450 million as well as USD 40 million with 7, 10, 12 and 15 year maturities.

The syndicated loan in the amount of EUR 450 million was arranged by Commerzbank, Deutsche Bank and UniCredit, with the participation of ten more banks. It comprises a fixed term loan of EUR 100 million and revolving credit lines of up to EUR 350 million. This facility has a five year term and was also distinctly oversubscribed.

'This new funding structure gives us the leeway to continue our growth strategy as concerns investments in our wagon fleet, controlled acquisitions in other markets, and further development of our logistics areas. In addition, our long-lasting capital assets are now financed on a more long-term basis', estimates Dr. Heiko Fischer, Chairman of the Executive Board of VTG Aktiengesellschaft. 'It gives us a chance to actively participate in the further positive development of the European rail market as well as to take advantage of upcoming opportunities for our company and our shareholders', adds Fischer.

In view of the residual term of the previous financing measures, which ran until 2015, there was no funding pressure on VTG, so that the Company was able carefully to evaluate different alternatives and choose the optimal financing structure for its needs. The US private placement also opened up access to the capital markets for debt capital, thus strongly diversifying the capital structure. The different maturities and tranches mean that VTG could substantially reduce its future refinancing risk. With maturities of up to 15 years, the Company has secured an advantageous interest rate level for the overall package.

The extraordinary refinancing related expense of approximately EUR 18 million is essentially the result of amortizations due to the early repayment of the existing loan, and will have a one-time negative impact on earnings before tax, Group net profit, and earnings per share in the current financial year 2011. This will not affect VTG AG's ability to distribute dividends..

About VTG:

VTG Aktiengesellschaft is one of Europe's leading wagon hire and rail logistics companies. The company has the largest private wagon fleet in Europe. Globally, the fleet consists of some 50,000 wagons, with a focus on tank cars and state-of-the-art high capacity freight cars and flat cars. In addition to the hiring of wagons, the Group offers global tank container transports and comprehensive multi-modal logistics services, mainly around rail transport.

With the combination of its three interlinked divisions Wagon Hire, Rail Logistics and Tank Container Logistics, VTG offers its customers a high-performance platform for international transport of their freight. The Group has many years of experience and specific expertise, in particular in the transport of liquid and sensitive goods. Its customers include numerous well-known companies from almost every industrial sector, for example the chemical, petroleum, automotive, paper and agricultural industries.

In the financial year 2010, VTG generated revenue of EUR 629.4 million and operating profit (EBITDA) of EUR 154.4 million. Via its subsidiaries and affiliates the company, which has its head office in Hamburg, is mainly present in Europe, Asia and North America. As at 31 December 2010, VTG had 999 employees worldwide in consolidated companies. Since June 2007, VTG AG has been listed on the official Prime Standard market of the Frankfurt Stock Exchange and also on the SDAX (WKN: VTG999).

Media contact:

Monika Gabler

Head of Corporate Communications

Telephone: +49 (0) 40 23 54-1341

Fax: +49 (0) 40 23 54-1340

Email: monika.gabler@vtg.com

Investor Relations contact:

Felix Zander

Head of Investor Relations

Telephone: +49 (0) 40 23 54-1351

Fax: +49 (0) 40 23 54-1350

Email: felix.zander@vtg.com

Further information at www.vtg.com



End of Corporate News


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122951  05.05.2011

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