euromicron AG has successfully placed a borrower’s note loan for €24.5 million and so is strengthening the Group’s long-term financing.
The prime objective of this step is to restructure part of the company’s short-term liabilities in favor of long-term funding. As a result, euromicron’s financing will be long term to about 40 percent in future and will make the Group more independent from any possible deterioration in the area of short-term financing.
The borrower’s note loan placed in July 2011 is divided over terms of 5 and 7 years. Due to strong interest among investors, the original volume of €20 million was far oversubscribed (€35 million). That created the foundation for setting the interest rate of both tranches at the lower end of the marketing range. The investors were savings banks (Sparkassen), German and Austrian banks and an insurance company. Commerzbank Aktiengesellschaft acted as arranger and paying agent for this successful transaction.
“The Group’s funding remains comfortable and capable of growing as a result of the borrower’s note loan and its available free lines of currently more than €25 million,” said Dr. Willibald Späth, Chairman of the Executive Board of euromicron AG. “The attractive terms of the borrower’s note loan for euromicron document our Group’s financial strength and the solidity of its balance sheet,” he added.
The borrower’s note loan is a further component in securing the financial flexibility the company needs in the next stage of its strategy, which will take euromicron nearer to the €300 million sales mark in 2011.
euromicron AG (www.euromicron.de) is an all-round solution provider for communications, data and security networks. Its network infrastructures integrate voice, video and data transport wirelessly, via copper cable and by means of fiber-optic technologies. euromicron builds its leading applications, such as security, control, healthcare or surveillance systems, on the basis of these cutting-edge network infrastructures.
Founded on its expertise as a developer and producer of fiber-optic components, euromicron AG is a strongly growing, highly profitable group that is listed on the stock market, has a medium-sized character and focuses on operational growth, integration and further market penetration, internationalization and expansion.