DGAP-News: KION Group further optimises its funding structure by repaying bonds (news with additional features)

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| Source: EQS Group AG
DGAP-News: KION GROUP AG / Key word(s): Bond
KION Group further optimises its funding structure by repaying bonds
(news with additional features)

02.04.2014 / 09:40

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- Bonds of EUR325 million and EUR200 million to be repaid in full
- Refinancing with drawing of revolving credit facility and additional bank
loan
- CFO Toepfer: "Lower interest payments open up greater flexibility"
- Further reduction of net financial debt and leverage are expected

Wiesbaden, 2 April 2014 - KION GROUP AG is continuing to improve its
funding structure by repaying secured corporate bonds with a total volume
of EUR525 million. A fixed-rate bond maturing in 2018 with a volume of
EUR325 million and a coupon of 7.875 per cent and a floating-rate bond
maturing in 2020 with a volume of EUR200 million and a coupon of
three-month Euribor plus 4.5 per cent are to be paid back in full on 15
April 2014 using the existing revolving credit facility and a further bank
loan of EUR200 million. "This step will lower our interest payments and
give us greater flexibility with which to pursue implementing our growth
strategy," said the KION Group's Chief Financial Officer, Thomas Toepfer.

The KION Group expects to save over EUR20 million per year in interest
payments. Under the terms and conditions of the bonds, early repayment
charges of around EUR15 million must be paid. This amount, along with the
reversal of the capitalised borrowing costs of around EUR8 million, will be
recognized as one-off financial expenses in the second quarter. Once the
bonds have been repaid, the company's long-term borrowing will comprise the
fixed-rate corporate bond with a volume of EUR450 million and a maturity
date of 2020, the revolving credit facility of EUR1,045 million expiring in
2018 and the further bank loan of EUR200 million maturing in 2019.

Having substantially reduced its net financial debt to EUR979 million as at
31 December 2013 in connection with the IPO, the KION Group's aim for this
year and the medium term is to continue to steadily reduce its levels of
debt and leverage. "We expect to be able to bring down our net debt using
cash flow from operating activities and we will thereby continuously
improve our capital and funding structure," said Toepfer.


Business performance in 2013
The KION Group can look back on a solid 2013. EBIT and profitability
reached record levels despite weakness in the western European market and
unfavourable currency effects. The Group recorded order intake and revenue
at similarly high levels to those in the previous year, after adjusting for
the sale of the hydraulics business in 2012.


About KION Group
The KION Group - comprising the six brands of Linde, STILL, Fenwick, OM
STILL, Baoli and Voltas - is the largest manufacturer of industrial trucks
in Western and Eastern Europe, the global number two in the industry and
the leading non-domestic supplier in China. The Linde and STILL brands
serve the premium segment worldwide. Fenwick is the largest supplier of
material handling products in France, while OM STILL is a market leader in
Italy. The Baoli brand focuses on the economy segment, and Voltas is a
market leader in India in industrial trucks. The KION Group is present in
more than 100 countries. In 2013 the KION Group employed more than 22,000
people and generated revenue of EUR4.49 billion.


Disclaimer
This document and the information contained herein are for information
purposes only and do not constitute a prospectus or an offer to sell or a
solicitation of an offer to buy any securities in the United States or in
any other jurisdiction.

This release contains forward-looking statements that are subject to
various risks and uncertainties. Future results could differ materially
from those described in these forward looking statements due to certain
factors, e.g. changes in business, economic and competitive conditions,
regulatory reforms, results of technical studies, foreign exchange rate
fluctuations, uncertainties in litigation or investigative proceedings, and
the availability of financing. We do not undertake any responsibility to
update the forward-looking statements in this release.


Further information for the media

Michael Hauger
Head of Corporate Communications
Tel.: +49 (0) 611.770-655
michael.hauger@kiongroup.com

Frank Brandmaier
Head of Corporate Media Relations
Tel.: +49 (0) 611.770-752
frank.brandmaier@kiongroup.com


Further information for investors

Frank Herzog
Head of Corporate Finance
Tel.: +49 (0) 611.770-303
frank.herzog@kiongroup.com

Silke Glitza
Head of Investor Relations and M&A
Tel.: +49 (0) 611.770-450
silke.glitza@kiongroup.com


End of Corporate News

+++++
Additional features:

Document: http://n.equitystory.com/c/fncls.ssp?u=APQJDAGHTW
Document title: Download Press Release

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02.04.2014 Dissemination of a Corporate News, transmitted by DGAP - a
company of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

DGAP's Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Media archive at www.dgap-medientreff.de and www.dgap.de

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Language:    English                                                
Company:     KION GROUP AG                                          
             Abraham-Lincoln-Str. 21                                
             65189 Wiesbaden                                        
             Germany                                                
Phone:       +49 (0)611 770-0                                       
Fax:         +49 (0)611 770-690                                     
E-mail:      info@kiongroup.com                                     
Internet:    www.kiongroup.com                                      
ISIN:        DE000KGX8881                                           
WKN:         KGX888                                                 
Indices:     SDAX                                                   
Listed:      Regulierter Markt in Frankfurt (Prime Standard);       
             Freiverkehr in Berlin, Düsseldorf, Hamburg, Hannover,  
             München, Stuttgart                                     
 
 
End of News    DGAP News-Service  
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