Valora successfully completes refinancing transaction, further improving its balance-sheet and debt maturity profile

Valora Holding AG successfully placed a Schuldschein issue of EUR 150 million as of October 30, 2013. Due to strong market demand, the issue was significantly oversubscribed, thus making it possible to double the size of the placement from an originally planned EUR 75 million to EUR 150 million. The tranches placed with investors offered attractive terms at the lower end of the marketing range.

Following the CHF 120 million issue of hybrid perpetual callable subordinated instruments in April 2013, this successful new Schuldschein placement marks the second important step in Valora's long-term financing strategy. As was the case with the earlier hybrid financing, the entire proceeds of this new issue will be directed towards replacing the term-loan portion of the existing syndicated credit loan. This enables Valora to achieve its goal of strengthening its balance-sheet metrics and diversifying its investor base. Moreover, it allows the company to enhance its financial flexibility, to lower its refinancing costs and to optimise its debt maturity profile.

The transaction was lead managed by Commerzbank Aktiengesellschaft and Landesbank Baden-Württemberg. The placement was well received by Swiss, German and international investors.