Key events
Since its initial public offering (IPO), the KION Group has improved its funding structure and is now on an even stronger footing for implementing its growth strategy. On 2 July 2013, the outstanding proceeds were received from the IPO and the capital increase from Weichai Power. They totalled € 701.6 million after deduction of banking fees. As part of the IPO, the KION Group had also agreed a new revolving credit facility with a group of banks for € 995.0 million with a term to maturity of five years after the IPO. Combined with the lower interest margins, this credit facility offers more favourable credit terms in line with those typically available to comparable listed companies.
As soon as all the proceeds from the IPO had been received, the KION Group used this cash, along with part of the new credit facility and existing cash reserves, to repay in full the long-term bank loans under the acquisition finance arrangements (Senior Facilities Agreement or SFA). In addition, the floating rate note, which was due to mature in 2018 and amounted to € 175.0 million, was also repaid in full in July 2013. Following completion of the main funding activities in the first nine months of 2013, the KION Group can report a healthy equity ratio of 26.4 per cent. As at the reporting date, net debt was roughly 1.5 times adjusted EBITDA for the past twelve months (excluding the hydraulics business). Long-term borrowing now comprises the new revolving credit facility plus secured floating-rate and fixed-interest corporate bonds with a total value of € 975.0 million, which are due to mature in 2018 and 2020 respectively.