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Sixt SE: Sixt SE signs syndicated loan agreement with bank consortium including KfW

DGAP-News: Sixt SE / Key word(s): Financing
06.05.2020 / 17:58
The issuer is solely responsible for the content of this announcement.

Sixt SE signs syndicated loan agreement with bank consortium including KfW

  • Due to the exceptional circumstances caused by the COVID-19 pandemic, even highly capitalised companies without rating, such as Sixt SE, are currently unable to finance themselves on the capital markets.
  • It is a revolving credit line of up to EUR 1.5 billion, concluded at market conditions and with a term up to two years.
  • The consortium consists of Bayerische Landesbank, Commerzbank Aktiengesellschaft, DZ BANK AG, UniCredit Bank AG as well as the German state-owned KfW Bank.
  • The credit line serves to secure financial flexibility, especially for financing Sixt Group's rental fleet.
  • Erich Sixt, CEO of Sixt SE: "This is a loan at market conditions to be fully repaid and not a cost-free subsidy."

Pullach, 6 May 2020 - Today, Sixt SE signed a syndicated loan with a consortium of banks consisting of Bayerische Landesbank, Commerzbank Aktiengesellschaft, DZ BANK AG and UniCredit Bank AG as well as the German state-owned "Kreditanstalt für Wiederaufbau" (KfW Bank). It is a revolving credit line of up to EUR 1.5 billion, concluded at market conditions and with a term up to two years.

2019 was the most successful financial year in the corporate history of Sixt SE. At the end of Q1 2020, its equity ratio was approx. 24 %. However, the capital market is currently not accessible for Sixt SE due to the COVID-19 pandemic. In view of the uncertainties caused by the COVID-19 pandemic, the Managing Board of Sixt SE has decided to secure financial flexibility through this syndicated loan agreement.

One of the conditions of this syndicated loan is a waiver by Sixt SE of dividend payments during the term of the loan, with the exception of the annual minimum dividend of EUR 0.05 paid for preference shares. In its ad-hoc notification of 16 March 2020, Sixt SE already announced a suspension of dividend payments for the 2019 fiscal year as part of its programme to limit the economic effects of the COVID-19 pandemic, irrespective of the negotiations with the KfW.

Erich Sixt, CEO of Sixt SE: "The syndicated loan serves our financial flexibility, especially the financing of the Sixt Group's rental fleet, as we still assume a gradual normalisation of demand in the second half of the year and a return to normality in 2021. The conclusion of this syndicated loan is primarily owed to the fact that, as a result of the COVID-19 pandemic, the capital market is currently inaccessible to companies of our size without external rating. I would like to stress that this is a loan at market conditions, to be fully repaid, and not a cost-free subsidy."

Alexander Sixt, Managing Board Member of Sixt SE: "To reduce the operative losses which we are suffering as a result of the COVID-19 pandemic, we already approved and consistently implemented a comprehensive package of measures at an early stage. These measures include a significant downsizing of our worldwide rental fleet to adjust it to the lower demand, as well as the implementation of other substantial savings of up to EUR 100 million. Well before the start of negotiations with the consortium of banks and the KfW, we had thus already defined the course to stabilise our results. We are a very healthy company, which was economically hugely successful before this crisis, thanks to its strategy, structure and substance. This is also reflected in our annual results for 2019 presented in March, in the number of rental agreements during the first two months of this year as well as in our current equity ratio. With this syndicated loan we also want to make sure that once demand picks up again after the end of the crisis, we will be able to serve this demand with our fleet and quickly rally back on the market."

About SIXT:

Sixt SE, with its registered office in Pullach near Munich, is a leading international provider of high-quality mobility services. With its products SIXT rent, SIXT share and SIXT ride the Company offers a uniquely integrated mobility service across the fields of vehicle rental, carsharing and chauffeur services. The products can be booked through one single app, which also integrates the services of its renowned mobility partners. SIXT has a presence in around 110 countries around the globe. The Company is characterised by consistent customer orientation, a lived culture of innovation with strong technological expertise, the high share of premium vehicles in its fleet and an attractive price-performance ratio. The Sixt Group generated revenue of EUR 3.31 billion in 2019 and ranks as one of the most profitable mobility companies worldwide. SIXT SE is the parent company of the Group and has been listed on the Frankfurt stock exchange since 1986 (ISIN ordinary share: DE0007231326, ISIN preference share: DE0007231334).https://about.sixt.de

For further information contact:

Sixt SE
Julia Hoffstaedter / Stefanie Seidlitz
Sixt Central Press Office
Tel.: +49 - (0)89 - 74444 6700
Mail: pressrelations@sixt.com



06.05.2020 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

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