Brief: Leoni Receives Agreement For Operating Loan At EUR 330 Million

Leoni AG

20/04/2020 14:56

April 20 (Reuters) - LEONI AG  LEOGn.DE :
    * RECEIVES COMMITMENT FOR A JOINT GUARANTEE OF GERMAN
FEDERAL AND
STATE GOVERNMENTS (BUND-LÄNDER-GROßBÜRGSCHAFT) FOR A EUR 330
MILLION OPERATING LOAN
    * GUARANTEE COVERS 90 PERCENT OF OPERATING LOAN, WHICH RUNS
UNTIL
31 DECEMBER 2022
    * LOAN AGREEMENT IS TO BE CONCLUDED SOON
    * OPERATING LOAN IS GRANTED AT NORMAL MARKET CONDITIONS BY
LEONI
AG'S CORE BANKS
    * NEW OPERATING CREDIT LINE WILL CREATE FINANCIAL
FLEXIBILITY TO
ENSURE CONTINUATION OF BUSINESS OPERATIONS AND TO FULLY FINANCE
GROUP
    * DURING TERM OF GUARANTEED OPERATING LOAN, LEONI HAS
COMMITTED TO
RETAINING ANNUAL NET PROFITS AND THUS TO A DE FACTO SUSPENSION
OF DIVIDEND PAYMENTS
    * COVID 19 MEASURES INCLUDE TEMPORARY PLANT CLOSURES IN
EUROPE,
NORTH AFRICA AND AMERICA AND SHORT-TIME WORK IN GERMANY AS WELL
AS SIMILAR MEASURES AT OTHER EUROPEAN SITES

Source text for Eikon:  ID:nEQ6SLnrta 
Further company coverage:  LEOGn.DE 

 (Gdansk Newsroom)
 ((gdansk.newsroom@thomsonreuters.com; +48 58 778 51 10;))