Heidelberg takes next significant step towards financial stabilization and tranformation

• Company pays back existing high-yield bond with term until 2022 before maturity
• On September 9, 2020, remaining € 150 million of bond plus accrued interest will be repaid from cash resources
• Payback permanently releases Heidelberg from high interest payments and creates further financial flexibility

Heidelberger Druckmaschinen AG (Heidelberg) is setting the next milestone in its ongoing financial stabilization and transformation process. The company announced today that it will pay back the remaining amount of € 150 million on the existing high-yield bond (HYB), which has a term to maturity until 2022 and a coupon of 8 % p.a., plus accrued interest before maturity, i.e. on Sep 9, 2020. The payback will be funded from cash reserves and will unburden the financial result by approx. € 12 million per year.

After the transfer of € 380 million in funds to the company from Heidelberg Pension-Trust e.V. in March this year for the purpose of refinancing and transformation, and the sale of the Gallus Group at the end of July 2020, Heidelberg will make the announced early repayment of the high-yield bond without delay.

“We are keeping our word and are working full speed ahead to consistently implement the measures announced in the program we presented in March to increase profitability, competitiveness and to secure our future. The early repayment of the high-yield bond is a further milestone in improving our financing structure. We are permanently freeing ourselves from high interest payments and are becoming more financially independent and flexible,” says Marcus A. Wassenberg, CFO of Heidelberg. Rainer Hundsdörfer, CEO of Heidelberg explains: “An this gives us leeway for future investments and to shape the future of our company.”

After the envisaged buyback of the high-yield bond, Heidelberg continues to have a stable financial framework, among other things due to a syndicated credit line which is agreed until 2023.                                                                                                                               

In accordance with the bond conditions, the repayment on September 9, 2020 will take place by means of a publicly announced optional early redemption with a redemption value of 100 percent plus accrued interest. The announcement of the buyback can also be viewed directly on the website of the Luxembourg stock exchange.

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Important note:

This press release contains forward-looking statements based on assumptions and estimations by the Management Board of Heidelberger Druckmaschinen Aktiengesellschaft. Even though the Management Board is of the opinion that those assumptions and estimations are realistic, the actual future development and results may deviate substantially from these forward-looking statements due to various factors, such as changes in the macro-economic situation, in the exchange rates, in the interest rates, and in the print media industry. Heidelberger Druckmaschinen Aktiengesellschaft gives no warranty and does not assume liability for any damages in case the future development and the projected results do not correspond with the forward-looking statements contained in this press release.