Case Studies

Acquisition financing for KSBG for the full takeover of STEAG/ STEAG’s debut promissory note (“Schuldscheindarlehen”) for growth

 

KSBG Kommunale Beteiligungsgesellschaft GmbH & Co. KG, a consortium of municipal utilities from North Rhine-Westphalia (NRW), which had already acquired a 51 percent stake in STEAG GmbH from Evonik in 2011, is now the sole shareholder of STEAG GmbH.

 

 

NORD/LB was involved in financing the purchase price for the remaining shares as well as in replacing the residual financing of the initial 51% with acquisition financing. An additional eight consortium partners were attracted into this deal. At the same time, a promissory note (“Schuldscheindarlehen”) was issued on behalf of STEAG GmbH. With this capital markets-based financing instrument, STEAG is now well positioned for further investments in the power generation potential in the renewable energies area. Moreover, the financing has strengthened its competitiveness. The capital market transaction was met with high demand from investors and was oversubscribed.

NORD/LB successfully places bonded loan for Bernard Krone Holding

NORD/LB has as the mandated lead arranger in cooperation with DZ Bank structured and widely placed a bonded loan for Bernard Krone Holding with selected investors. At the same time it was responsible for hedging the interest rate risk.

The small town of Spelle in the south of Emsland District is home to one of the world’s leading manufacturers of agricultural technology and commercial vehicles. Bernard Krone Holding GmbH & Co. KG has around 2,100 employees and generates sales of EUR 1.3 billion.

The implementation of this corporate finance transaction has allowed NORD/LB to further consolidate its position as the house bank of the Bernard Krone Group. With an order book volume oversubscribed by around 2.3 times, a total of EUR 110 million has been collected in the book-building process from various investors, including a few banks from the public sector.

Successful first issue of bonded loan supplements financing of investment programme for Mark-E Aktiengesellschaft, Hagen

Mark-E Aktiengesellschaft has issued three bonded loans worth a total of EUR 57 million within the scope of its “Strategy 2020” to finance its investment programme. With the use of this near-capital-market financial instrument, which was supported by NORD/LB as the sole mandated lead arranger and sole bookrunner, Mark-E Aktiengesellschaft and the entire Enervie Group as the parent company are taking a new direction.

The bonded loans have maturity periods of 6, 8 and 10 years and were issued widely to selected investors, including local and international public banks.

Ivo Grünhagen, Spokesperson of the Managing Board of the Enervie Group, on the successful transaction: “The financing of the planned investments within the scope of Strategy 2020 is an important task which is key for our future. With its first issue of a bonded loan as a supplementary financial instrument, Mark-E has managed to widen its financial base for the long term and at the same time secure attractive conditions with the spreading of the maturities.”

As the transaction has been met by keen demand among investors, Mark-E Aktiengesellschaft decided to use the oversubscribed order book to increase the volume of the financing.

Duravit Group - off-balance sheet solution

A low-cost and liquidity-preserving financing structure, which was tailored to DURAlog Duravit Logistik GmbH, combines need-based leasing with funds from the Kreditanstalt für Wiederaufbau (Reconstruction Loan Corporation).

In the industry, the Duravit Group is considered one of the leading providers in matters related to bathroom design and covers the entire area of bathroom furnishing with sanitary ware, bathroom furniture, accessories, bathtubs/sinks and wellness ideas. Duravit operates 27 investment companies around the world and is present in over 90 countries. The increase in sales within the Duravit Group led to a need for optimisation and expansion in the existing logistics capacity for the 100% logistics subsidiary DURAlog Logistik GmbH (in short: DURAlog). DURAlog is responsible for the execution of services in the area of logistics and transport and operates a central storage facility in Aachen. The planned expansion of the logistics capacity was supposed to be handled through the construction of a fully automated high bay warehouse on land already owned by the Duravit Group.

In collaboration with the leasing subsidiary LHI Leasing GmbH and in close coordination with the Duravit Group, NORD/LB structured a need-based, off-balance sheet financing solution for the construction of the high bay warehouse. We implemented the project with an investment sum in the double-digit million range through build-and-lease-back financing with the inclusion of funds from the Kreditanstalt für Wiederaufbau (Reconstruction Loan Corporation). The combination of both financing alternatives made it possible to provide low-cost and liquidity-protecting financing for the Duravit Group.

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