Allen & Overy advises Koenig & Bauer on EUR 500 million refinancing

The new syndicated credit facilities replace the existing arrangements, which were due to expire at the end of 2024. As in the past, the company's own liquidity together with the flexible credit facilities will allow to finance planned organic growth in the promising market of packaging printing, giving the financial leeway required for strategic investments and acquisitions. With the early termination of the KfW loan obtained in connection with the Covid-19 pandemic, Koenig & Bauer will no longer be subject to any of the restrictions associated with that loan.

In addition to a revolving cash facility of EUR 300 million, the syndicated finance includes a guarantee facility of EUR 200 million. The credit facilities have a maturity of five years (expiring in October 2028), subject to a two-year extension option in agreement with the lenders. To highlight the importance that Koenig & Bauer attaches to sustainability also in its funding operations, the agreement now provides for an ESG rendezvous clause in addition to the usual Loan Market Association (LMA) requirements. This is to be implemented in 2024, subject to the consent of all parties involved in the financing.

The banking syndicate was lead-managed and the facility arranged by Commerzbank Aktiengesellschaft and UniCredit Bank AG. It also includes Bayerische Landesbank, BNP Paribas S.A. German branch, Deutsche Bank, DZ Bank AG, HSBC Continental Europe S.A., Germany and Landesbank Baden-Württemberg. Credit Suisse (Switzerland) AG has also been gained as a further member. In addition, KfW, which is now in a new role, will remain in the syndicate via the 290 funding programme for digitalisation and innovation.

Koenig & Bauer is a globally active printing press manufacturer with headquarters in Würzburg (Germany). It supplies machines and software solutions covering the entire printing, finishing and converting process, with a particular focus on packaging. With a history extending back more than 200 years, Koenig & Bauer is the oldest printing press manufacturer in the world and is today at home in virtually all printing processes. Together, the group companies count a total of around 5,500 employees. Koenig & Bauer operates manufacturing plants at eleven locations in Europe, alongside a global sales and service network. The annual revenue in the 2022 financial year was around EUR 1.2 billion.

The Allen & Overy team comprised partner Thomas Neubaum, counsel Dr Mark Hallett and associate Anastasiya-Evangelina Wiegand (all Banking & Finance, Frankfurt).