Bloomberg Anywhere Remote Login Bloomberg Terminal Demo Request


Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.


Financial Products

Enterprise Products


Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000


Industry Products

Media Services

Follow Us

Continental Proposes Initial Terms on 6 Billion-Euro Loan

Continental AG offered lenders joining a credit line initial interest ranging from 250 basis points to 300 basis points more than benchmark lending rates, two people with knowledge of the deal said.

Europe’s second-largest tiremaker is seeking 6 billion euros ($8.3 billion) of term loans and revolving credits for as long as three years to replace maturing debt, said the people, who declined to be identified because the financing is private.

Antje Lewe, a spokeswoman for Continental, declined to comment on details of the refinancing.

Hanover, Germany-based Continental agreed to pay interest of between 475 basis points and 500 basis points more than benchmark lending rates for its existing loans, according to data compiled by Bloomberg. The debt stems from Continental’s 2007 acquisition of Siemens AG’s VDO unit for 11.4 billion euros. A basis point is 0.01 percentage point.

Loan issuers in the same ratings category as Continental paid an average margin of 335 basis points in the past six months on European loans, according to data compiled by Bloomberg. Continental’s debt is rated B by Standard & Poor’s and B1 by Moody’s Investors Service.

Citigroup Inc. and Deutsche Bank AG are coordinating the refinancing, the data show. A basis point is 0.01 percentage point.

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.