Grammer has successfully issued debenture bonds worth EUR120 million (USD130.3 million), said a company press release. “With the successful placement of the new debenture bonds, we have been able to utilise very advantageous terms to put the recent acquisition of the REUM Group on a favourable financial footing. At the same time, we have been able to additionally widen the scope that we already had for financing our planned growth and future strategic investments,” said Hartmut Müller, CEO, Grammer.
The new debenture bonds comprise five tranches of up to 10 years with either fixed or floating interest rates.
Significance: The issue of the latest debenture bonds is part of Grammer’s long-term funding strategy which also aims at achieving a broader investor base and a further improvement in the maturities structure. The investor base includes numerous domestic and international financial institutions.The high demand on the part of investors had prompted Grammer to increase the originally-planned volume by 60% in the latest issue of debenture bonds.
Last month, Grammer completed the EUR50 million (USD55 million, 4 January 2016) acquisition of the plastics specialist REUM Group, which includes REUM Kunststoff- und Metalltechnik GmbH and REUM Polska Sp.z.o.o. Germany-based REUM Group has 950 employees and generated sales of around EUR130 million (USD158 million, 31 December 2014) in 2014. The transaction was financed via Grammer's existing credit facilities.
