Schaeffler holdco repays part of junior loans, bonds

26 Sep 2012

German ball-bearings maker Schaeffler has reduced its holding company debt by €1.6bn to €3.5bn after using the proceeds of the sale of a portion of its stake in Continental to repay some PIK debt.

However, given that Schaeffler’s total debt — including at holding company and group level — is still more than €11.5bn, Standard & Poor’s said the reduction in debt would not lead to a rating upgrade.

“Although the transaction will improve credit metrics for Schaeffler, the company will ...

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