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Schaeffler reduces debt

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– Schaeffler Holding and Schaeffler AG place a combined approx. 4% of Continental shares with a broad range of investors
– Net proceeds to be used to pay down debt
– Additional reduction of debt from excess cash flow
– Continental remains long-term strategic shareholding
Schaeffler, the global automotive and industrial supplier, continues to reduce its debt. Today, the company announced the placement of approx. eight million shares in Continental AG with a broad range of international investors in an Accelerated Bookbuilt Offering. As part of the transaction, Schaeffler AG and Schaeffler Verwaltungs GmbH, holding company of Schaeffler AG, will each sell approx. two percent of the outstanding share capital of Continental AG.
The net proceeds of the share placement will be used for early partial repayment of financial debt of Schaeffler Holding and Schaeffler AG, respectively. The receiving banks also include an affiliate of the bank placing the shares. Additionally, approx. ?325 million from excess cash flow will be used to further reduce debt of Schaeffler AG.
In the context of the placement Schaeffler has undertaken not to sell any Continental shares for a market-standard period of 180 days. With a consolidated share of approx. 46% of the outstanding share capital, Schaeffler remains the largest shareholder in Continental AG, thereby confirming its long-term strategic participation in the company.
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Neither this announcement nor anything contained herein shall form the basis of, or be relied upon in connection with, any offer or commitment whatsoever in any jurisdiction. The securities of Continental AG may not be offered or sold in the United States absent registration or an exemption from registration under the U.S. Securities Act of 1933, as amended (the -Securities Act-). The securities of Continental AG have not been, and will not be, registered under the Securities Act.
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Forward-looking statements and projections
Certain statements in this press release are forward-looking statements. By their nature, forward-looking statements involve a number of risks, uncertainties and assumptions that could cause actual results or events to differ materially from those expressed or implied by the forward-looking statements. These risks, uncertainties and assumptions could adversely affect the outcome and financial consequences of the plans and events described herein. No one undertakes any obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. You should not place any undue reliance on forward-looking statements which speak only as of the date of this press release. Statements contained in this press release regarding past trends or events should not be taken as representation that such trends or events will continue in the future. The cautionary statements set out above should be considered in connection with any subsequent written or oral forward-looking statements that Schaeffler, or persons acting on its behalf, may issue.

Schaeffler with its product brands INA, LuK and FAG is a leading provider of rolling bearing and plain bearing solutions and of linear and direct drive technology, as well as a renowned supplier to the automotive industry of high-precision products and systems for engines, transmissions, and chassis applications. The group of companies with operations around the world generated sales of approximately ?11.1 billion in 2012. With more than 76,000 employees worldwide, Schaeffler is one of the largest German and European industrial companies in family ownership. With 180 locations in over 50 countries, Schaeffler has a worldwide network of manufacturing locations, research and development facilities, distribution companies, engineering offices, and training centers.