Continental Said to Sign 4.5 Billion-Euro Refinancing Next Week

Continental AG (CON), Europe’s second- largest auto-parts supplier, plans to sign its 4.5 billion-euro ($6 billion) loan refinancing next week, according to two people with knowledge of the matter, who asked not to be named because the information is private.

The new loans comprise a 3 billion-euro five-year credit line and a 1.5 billion-euro three-year term loan, according to data compiled by Bloomberg. The debt cuts the interest costs of the Hanover, Germany-based company, with the shorter loan paying an initial interest rate of 225 basis points more than benchmark rates and the longer piece paying 200 basis points, the data show. A basis point is 0.01 percentage point.

The debt to be replaced includes a 2.875 billion-euro term loan paying an initial interest margin of 300 basis points more than benchmarks and a 2.5 billion-euro revolving credit paying 250 basis points, according to the data. Under a revolver, money repaid can be borrowed again.

Antje Lewe, a spokeswoman for Continental, said the company was confident it would conclude negotiations with lenders and sign the loan this month.

To contact the reporter on this story: Patricia Kuo in London at

To contact the editor responsible for this story: Faris Khan at

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.