KBA Extends Credit Lines with German Banking Pool Until End of 2015

WÜRZBURG, GERMANY—February 22, 2013—Press manufacturer Koenig & Bauer (KBA) has taken a further step to align the company in the mid-term by extending its credit lines for cash use and guarantees by three years. Credit lines granted to the Parent by its banking consortium total €100m.

“With this step we are taking advantage of the current favorable interest rate level and have provided ourselves with a solid financial backing in the volatile capital-goods industry,” says KBA CFO Dr. Axel Kaufmann. At the beginning of 2012, KBA agreed on a credit line of 100 million Swiss francs with the Credit Suisse bank for its large subsidiary in the security business. These credit lines for the next few years are crucial foundations in maintaining a solid financial position. KBA’s own comfortable liquidity from its operational business and additional credit lines over several years allows the management flexibility and opens up options for expansion and other strategic steps.

All of the banks participating in the German pool so far with Unicredit as leader of the consortium, plus Bayern LB, Commerzbank and Deutsche Bank, have confirmed their involvement. KBA sees this commitment as an expression of trust in the sustainable future development of KBA’s line of business based on several pillars in traditional sheetfed and web offset markets and future-oriented growth segments such as digital, metal-decorating, security, coding and packaging. Thanks to healthy free cash flow from operating activities, backed by consequent cash management, over the past years Koenig & Bauer rarely made use of the existing credit lines for cash use, even at the height of the financial crisis. However, credit lines were used for guarantees, which are common practice in the project business, e.g. for prepayments.

“When taking into account bank debts, earnings before taxes in the last years, equity ratio and other financial and balance sheet ratios, KBA positively outperforms other companies in the industry,” concludes Kaufmann. “Our customers value this as they can rely on KBA as a healthy and long-term business partner.”

Source: KBA.