Schaeffler has said that it has reached a major mid-term financing deal with its creditors.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
The firm – which extended itself to take control of Continental – said that the EUR12bn agreement with the five banks in Schaeffler’s lending consortium gives the group a much-needed lifeline.
“With this agreement on a financing concept, we have reached a key milestone on the way to developing the Schaeffler Group in the coming years,” chief financial officer Klaus Rosenfeld said in a statement.
“At the same time, we are fulfilling a further important requirement with this concept for a possible merger of the Schaeffler Group with Continental AG.”
The financing will come in two tranches – one covering a period of up to four and a half years, the other of up to six years.
