K+S renews syndicated credit line early
Strong balance sheet pays off: Credit line renewed early and increased
- No capital increase necessary to further finance the Legacy Project
- Dividend policy will be retained
July 2, 2013 (Source: K+S) — K+S Aktiengesellschaft has renewed early and increased its existing credit line, set to run until 2015, on attractive terms. The existing credit line in the amount of € 800 million, which was unused, will be replaced by a new credit line in the amount of € 1 billion with a term of five years until 2018 and with two extension options of one year in each case.
In this way, the Company strengthens its liquidity that apart from general corporate purposes can also be used for financing the Legacy Project. The targeted way of financing the construction of the new potash plant in Canada by 2016 with available cash, future cash flows and, if necessary, further borrowings will remain unchanged.
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“The early renewal and increase of the credit line on attractive terms is a clear proof of the financial strength of K+S,” said Dr. Burkhard Lohr, the chief financial officer of K+S Aktiengesellschaft. “The dividend policy of the Company will not be affected,” Lohr went on to say.
Under the leadership of UniCredit together with BNP Paribas, Société Générale and Royal Bank of Scotland, the credit line was placed among 15 international banks.
K+S is one of the world’s leading suppliers of standard and speciality fertilizers. In the salt business, K+S is the world’s leading producer with sites in Europe as well as North and South America. K+S offers a comprehensive range of goods and services for agriculture, industry, and private consumers, which provides growth opportunities in virtually every sphere of daily life. Worldwide, the K+S Group employs more than 14,000 people. The K+S share – the commodities stock on the German DAX index – is listed on all German stock exchanges (ISIN: DE000KSAG888, symbol: SDF). More information about K+S at http://www.k-plus-s.com.
Raj Shah has professional experience working for over a half a dozen years at financial firms such as Merrill Lynch and First Allied Securities Inc., ... <Read more about Raj Shah>