With support from IR.on AG, technology specialist Hörmann Finance successfully issued its second bond, thereby securing the refinancing of its corporate bond issued in 2013 at an early stage.
Cologne, 25 Vovember 2016 – Due to strong demand from investors, the public offering in Germany, Luxembourg and Austria was completed ahead of schedule and the EUR 30 million bond was fully placed already on the first day. The bond is listed in the Frankfurt Stock Exchange’s Entry Standard segment for corporate bonds since mid-November.
Having operated successfully for over 60 years, the family-owned company from Kirchseeon near Munich took advantage of the favourable interest rate environment to further optimise its medium to long-term financing structure. At 4.50 percent, the fixed annual coupon of the new bond sat in the middle of the defined range of 4.25 to 4.75 percent.
The proceeds from the issue will be used for the early repayment of the outstanding EUR 50 million bond, which carries a coupon of 6.25 percent and has been called with effect from 5 December 2016. The company will also use cash and cash equivalents to fully repay the bond and will thus reduce its total financial liabilities.
A major challenge for the communication activities was the difficult market environment for SME bonds in Germany, caused by a large number of insolvencies.
A major challenge for the communication activities was the difficult market environment for SME bonds in Germany, caused by a large number of insolvencies and the resulting negative coverage of this segment in the media. Accordingly, emphasis needed to be placed on the fact that Hörmann Finance has established itself as a reliable capital market partner and a solid investment in a challenging environment over the past three years. As the communication strategy inspired confidence in the bond among both institutional and private investors, the company’s reputation in the capital market was strengthened further.
The successful transaction completed by Hörmann Finance GmbH shows that solid SMEs with a sustainable orientation and a clear commitment to the capital market stand a good chance of implementing and maintaining a diversified financing structure in the capital market at attractive terms even in the challenging environment currently prevailing in the market
IR.on AG acted as communication and marketing consultant on this project. The Hörmann issue was the fourth successful early refinancing exercise – after Schalke, Karlsberg and Ekosem Agrar – completed with assistance from IR.on this year, bringing the total number of bond issues supported by IR.on in the past five years to 24, with the proceeds from these issues totalling over EUR 1.6 billion.