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14. April 2010

Positive decision of German Federal Ministry of Economics and Technology

SCHMOLZ+BICKENBACH receives positive decision of German Federal Ministry of Economics and Technology under Economic Stimulus Package II as basis for successful conclusion of new financing structure up to end-2012

The wholly owned subsidiary of SCHMOLZ+BICKENBACH AG, SCHMOLZ+BICKENBACH Edelstahl GmbH, Düsseldorf, has received the definitive text of the decision signed by representatives of the Federal Republic of Germany and the state of North Rhine-Westphalia under Economic Stimulus Package II, together with the associated letter of the Federal Ministry of Economics and Technology regarding grant of a guarantee, as well as the decision of the KfW Bank Group.

In addition to other financing instruments, the future financing package will consist of the following three components:

  • A club deal for EUR 200 million, of which a tranche with a credit volume of EUR 100 million will be provided by the KfW Bank Group under the special programme for large companies
  • A club deal for EUR 300 million secured to 75% against default by a guarantee granted by the Federal Republic of Germany and the state of North Rhine-Westphalia
  • Continuation of the syndicated loan of the existing bank consortium for EUR 525 million.

In a difficult environment of the capital and financial markets, SCHMOLZ+BICKENBACH has thus succeeded in obtaining the two essential elements of financing a total credit volume of EUR 1,367 million for the entire Group until the end of 2012, thereby assuring adequate flexibility for growth of business activity in the recovering markets.

Based on the positive decision, the financing concept will now be finalised and implemented with the banks. The Board of Directors and Executive Management Committee of SCHMOLZ+BICKENBACH AG expect this to be completed by the end of May 2010.

Further information about the financial year 2009 and the current level of business will be given at the Media Conference on April 29, 2010.

 

Contact persons for further information are:

Benedikt Niemeyer, CEO, phone +41 41 209 50 40

Dr. Marcel Imhof, COO, phone +41 41 209 51 81

Investor Relations

Axel Euchner, CFO, phone +41 41 209 50 35