Sale of Certain Assets of the Container Handling Business
In February 2013, we entered into a sale and purchase agreement with Konecranes Plc, Konecranes UK Ltd., Konecranes Lifttrucks AB and Konecranes Port Machinery (Shanghai) Co., Ltd. (together "Konecranes"), a leading group of lifting businesses, in relation to certain assets from our container handling business. Our LMH segment will continue to offer reach stackers and container handlers in the future, manufactured by Konecranes. In connection with the transaction, we and Konecranes signed a long-term supply agreement. On April 30, 2013 we closed the transaction. Production of the Linde Material Handling heavy forklift trucks will be mainly transferred to a contract manufacturing facility in the Czech Republic during the coming months with full production at the new facility timetabled for October 2013. Production at the heavy truck production facility in Merthyr Tydfil, United Kingdom, will cease during October 2013.
Issuance of Senior Secured Notes
On February 6, 2013, KION Finance S.A. issued senior secured notes due 2020 (the “2020 Senior Notes”). The proceeds of the 2020 Senior Notes were on-lent under the H2 Notes Credit Facility under the existing Senior Facilities Agreement through the Term Loan Facility H thereto. The H2 Notes Credit Facility is unconditionally guaranteed on a senior basis by KION Material Handling GmbH and certain of its subsidiaries. The 2020 Senior Notes are admitted to trading on the Euro MTF Market and listed on Official List of the Luxembourg Stock Exchange.