Schaeffler places senior secured notes of 1.25 billion Euro

•    Volume upsized from €1 billion to €1.25 billion
•    Two tranches with maturities of five to eight years in Euro and
US-Dollar
•    Proceeds to be used to prepay existing bank debt

HERZOGENAURACH, April 23, 2013. Today, Schaeffler AG successfully placed €1.25 billion of senior secured bonds on the international capital markets. The origi-nally envisaged issue size of €1 billion was increased by €250 million.

The issue consists of one Euro tranche and one US-Dollar tranche. The Euro tranche has a volume of €600 million with a maturity of five years and a coupon of 4.25 percent. The US-Dollar tranche totals $850 million with a maturity of eight years and a coupon of 4.75 percent.

The bonds will be issued by Schaeffler Finance B.V. and guaranteed by Schaeffler AG as well as by selected subsidiaries. They will be listed on the Euro MTF market of the Luxembourg Stock Exchange. Standard & Poor’s and Moody’s have rated the bonds B+ and Ba3, respectively.

The net proceeds from the new high yield bonds will be used to partially prepay out-standing bank loan facilities. The remaining bank loan volume will be refinanced with improved terms and conditions and extended maturities. Through these measures, the company’s debt maturity profile will be significantly improved and cost of debt further reduced.