Schaeffler, a global automotive and industrial supplier, has achieved a significant milestone by closing the syndication of a multi-billion euro financing package to support the ongoing tender offer for Vitesco Technologies Group. The financing will cover transaction-related costs and potential refinancing needs of Vitesco.
The facilities, with a twelve-month tenor and the option of extension, mark a crucial step in the strategic move announced on October 9, 2023. Schaeffler initiated a public tender offer for all outstanding shares in Vitesco, aiming to establish a leading Motion Technology Company. The combined entity will boast four focused “pure play” divisions, providing substantial strategic advantages, particularly in the rapidly growing E-Mobility sector.
The financing package for the tender offer received full underwriting from major financial institutions, including Bank of America, BNP Paribas, Citibank, and Deutsche Bank, all of whom acted as bookrunners. This syndication process also attracted participation from new international tier-1 banks, highlighting the support and confidence in the transaction’s strategic rationale.
Claus Bauer, CFO of Schaeffler AG, expressed satisfaction with the positive response from both existing and new banks, stating, “The extremely positive resonance and commitment from existing relationship banks as well as new international banks in the syndication process demonstrates the convincing support for this transaction and its compelling strategic rationale. Both companies will be stronger together.”
The acceptance period for the tender offer is set to conclude on December 15, 2023, at 24:00 hours local time in Frankfurt am Main, Germany. Schaeffler anticipates the closure of the tender offer in early January 2024, marking a pivotal moment in the journey toward creating a powerhouse Motion Technology Company through the successful collaboration of Schaeffler and Vitesco Technologies Group.