Grammer AG completes refinancing ahead of schedule in a demanding market environment

Amberg, February 25, 2020 - Grammer AG has placed its long-term group funding operations on a solid basis with a new syndicated loan. The syndicated loan consists of two tranches. Tranche A is composed of a credit facility of EUR 150 million for a period of five years plus two one-year renewal options. This tranche is to be used to refinance existing financial liabilities ahead of schedule and at the same time to top up the previous facility, which had a volume of EUR 100 million and originally expired at the end of October 2020. In addition, the remaining purchase price of USD 80 million for the acquisition of the US automotive components supplier TMD Inc. is being funded via a second Tranche B. This marks the scheduled completion of the funding for the largest acquisition in Grammer AG's history.

"The new syndicated loan gives us substantially greater financial flexibility and forward planning visibility in the long term. The new contract reflects the banks' confidence in our business performance," explains Karsten Linke, Vice President Group Finance of the Grammer AG.

The transaction has been structured as a club deal by Grammer's principal banks. The company's solid business performance in 2019 in a challenging industry environment was among other things the decisive factor for the new credit facility. By signing a new syndicated loan agreement, Grammer AG has been able to improve its maturities profile and will also benefit from more attractive borrowing costs.

About Grammer AG

Located in Amberg, Germany, Grammer AG specializes in the development and production of components and systems for automotive interiors as well as suspended driver and passenger seats for onroad and offroad vehicles. In the Automotive Division, Grammer supplies headrests, armrests, center console systems, high-quality interior components, operating systems and innovative thermo-plastic solutions to premium automakers and automotive system suppliers. The Commercial Vehicles Division comprises seats for the truck and offroad seat segments (tractors, construction machinery, and forklifts) as well as train and bus seats. With over 15,500 employees, Grammer operates in 20 countries around the world. Grammer shares are listed in the Prime Standard and traded on the Frankfurt and Munich stock exchanges via the electronic trading system Xetra.