Financial News

12/January/2016

DGAP-News: VTG Aktiengesellschaft: VTG concludes refinancing with considerably improved terms


DGAP-News: VTG Aktiengesellschaft / Key word(s): Financing

2016-01-12 / 10:06
The issuer is solely responsible for the content of this announcement.


VTG concludes refinancing with considerably improved terms

- EUR 1.2 billion refinancing volume

- Terms between 5 and 7 years

- Group interest rate decreases significantly

- Improved conditions lead to annual savings of EUR 10 million

Hamburg, January 12, 2016. VTG Aktiengesellschaft (WKN: VTG999), one of Europe's leading wagon hire and rail logistics companies, has refinanced a large proportion of its existing bank loans. In this process, the company has concluded new financial agreements for approximately EUR 1.2 billion with an international banking consortium led by KfW IPEX-Bank and UniCredit. This equates to about two thirds of VTG's total financial liabilities. Due to the current low level of interest rates and improved creditworthiness, the Group's average interest rate has fallen significantly. This will lead to noticeable relief in the interest costs for the years ahead. This financing further includes the conclusion of a new credit and guarantee line, in an amount of some EUR 300 million, which increases VTG's flexibility for further growth-related investments.

"The new financing structure allows us to benefit from the current low level of interest rates, while consolidating and standardizing the credit structures of both VTG and the acquired AAE Group," explained Mark Stevenson, member of the Executive Board responsible for Treasury, Financing and Taxes and added: "This represents an important step towards attaining the medium-term financial targets we have set for 2018."

In the course of refinancing the EUR 1.2 billion, VTG worked with a consortium of twelve international banks. VTG has long-standing business relations with the two institutions which are managing the syndicate, namely KfW IPEX-Bank and UniCredit, whose structuring expertise allowed them to implement the complex financing process in cooperation with the other banks and investors.

VTG's new financing arrangement comprises two principle elements, namely a credit line of EUR 500 million with a seven-year term and a further credit line of EUR 400 million with a term of up to five years, both lines financed by a single syndicate of banks. These credit lines replace the majority of the Group's previous financings. In addition, a credit line of EUR 300 million with a three-year term, also financed through the bank consortium, ensures VTG flexibility for future growth.

Through its refinancing VTG is able to make annual savings of EUR 10 million. One-off extraordinary expenses amounting to EUR 7.0 million will be reflected in the consolidated financial statements for the 2015 financial year.

"Acquiring AAE has not only enabled our fleet to expand considerably, but it has also substantially broadened our funding framework", said Dr. Heiko Fischer, CEO of VTG Aktiengesellschaft, commenting on the transaction. "The new financing agreement gives us a foundation for increasing profitability and, in turn, achieving our financial objectives", he added.

About VTG:

VTG Aktiengesellschaft is one of Europe's leading wagon hire and rail logistics companies, with a fleet consisting of more than 80,000 railcars. VTG offers a full-range service, providing tank cars, intermodal wagons, standard freight wagons and sliding wall wagons. In addition to the hiring of wagons, the Group offers comprehensive multi-modal logistics services, mainly around rail transport, and global tank container transports.

With the combination of its three interlinked divisions Railcar, 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.

For the financial year 2015, VTG expects to achieve Group revenue of between EUR 1 and 1,1 billion and operating profit (EBITDA) of between EUR 325 und 350 million. Via its subsidiaries and affiliates the company, which has its head office in Hamburg, is mainly present in Europe, Asia, Russia and North America. As at 30 September 2015, VTG had 1,444 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).

Press contact:

Monika Gabler
Head of Corporate Communications
Telephone: +49 (0) 40 23 54-1341
Fax: +49 (0) 40 23 54-1340
E-mail: monika.gabler@vtg.com

Investor Relations contact:

Christoph Marx
Head of Investor Relations
Telephone: +49 (0) 40 23 54-1351
Fax: +49 (0) 40 23 54-1350
E-mail: christoph.marx@vtg.com

For more information visit www.vtg.com



2016-01-12 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

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