Bertelsmann Capitalizes on Favorable Market Conditions to Successfully Place €750 Million Benchmark Bond
THE INFORMATION CONTAINED IN THIS ANNOUNCEMENT IS NOT INTENDED FOR PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR TO THE UNITED STATES OF AMERICA, AUSTRALIA, CANADA, OR JAPAN.
- Bertelsmann strengthens financial flexibility as part of the company’s ongoing transformation
- €750 million benchmark bond with an eight-year maturity successfully issued
- Final order book oversubscribed 3.3 times
- Rolf Hellermann: “Bertelsmann enjoys a strong reputation on the capital market.”
- Proceeds to be used for general corporate purposes, including the repurchase of an existing hybrid bond to optimize the capital structure
The new issue is an eight-year benchmark bond with a nominal amount of €750 million and carries a fixed coupon of 3.375 percent.
Rolf Hellermann, Chief Financial Officer of Bertelsmann, said: “We are very pleased with the strong investor interest in our new issue. The robust demand from institutional investors resulted in a significant 3.3-times oversubscription of the final order book and underscores the capital market’s high regard for Bertelsmann as a first-class issuer.”
Hellermann continued: “With the planned issue and the parallel tender offer, we are continuing our strategy of further optimizing the Group’s capital structure and strengthening our financial flexibility over the long term. At the same time, we are taking advantage of the attractive market environment to extend the average maturity of our Group financing in a targeted manner.”
The transaction was accompanied by BofA Securities and Deutsche Bank as Global Coordinators and, together with HSBC, NatWest, and Santander, as Active Bookrunners.
About Bertelsmann
Bertelsmann is a media, services, and education company with about 75,000 employees that operates in some 50 countries around the world. It includes the entertainment group RTL Group, the trade book publisher Penguin Random House, the music company BMG, the service provider Arvato Group, Bertelsmann Marketing Services, the Bertelsmann Education Group, and Bertelsmann Investments, an international network of funds. The company generated revenues of €19 billion in the 2024 financial year. Bertelsmann stands for creativity and entrepreneurship. This combination enables first-class media offerings and innovative service solutions that inspire customers around the world.
Disclaimers:
This announcement does not constitute an offer or invitation to purchase or subscribe for any securities. The securities have already been sold.
This announcement does not constitute an offer to sell securities in the United States of America. Securities may only be sold or offered for sale in the United States of America if they have been registered under the U.S. Securities Act of 1933, as amended (the “Securities Act”), or pursuant to an exemption from the registration requirements of the Securities Act. The securities referred to herein have not been and will not be registered under the Securities Act. There has been and will be no public offering of the securities mentioned in this announcement in the United States of America.
Subject to certain exceptions, the securities referred to in this announcement may not be sold or offered for sale in Australia, Canada, or Japan, or to, or for the account or benefit of, persons resident or located in Australia, Canada, or Japan.
Contact
Jan Hölkemann
Spokesperson / Communications Content Team
Phone: +49 (0) 52 41 80 89923
