MIFA: 25 million with Corporate Bonds
The Mitteldeutsche Fahrradwerke AG (MIFA) has resolved the issue of a 25 million euro corporate bond with a five-year maturity and a 7.50% coupon.
The bond was placed exclusively among institutional investors as a private placement, with demand significantly exceeding the offer volume. The application has been made to include the bond in the Frankfurt Stock Exchange’s Quotation Board from August 5, 2013 (trading on terms of issue), and the issue’s value date is August 12, 2013.
Optimizing financing structure
Peter Wicht, MIFA’s CEO, said, “We are very happy with this successful corporate bond placing. We have received very positive feedback on our business model at investor meetings over recent days.” MIFA intends to use the net proceeds from the bond to further optimise its financing structure: the refinancing of short-term bank borrowings should sustainably boost MIFA’s planning security and corporate flexibility.
MIFA also plans to use some of the 25 million for future investments – including the establishing of the brand portfolio, new technological developments and the further automation of the value chain. The proceeds are also intended to serve the additional expansion of working capital, thereby supporting MIFA’s further organic growth. MIFA sold 546,000 bicycles in the 2012 financial year (2011: 644,000), generating € 111.3 million of revenue, representing a 10.7 % increase compared with 2011 (€ 100.5m). E-bikes comprised 30.0 % of total revenue (2011: 12.5 %). EBIT stood at € 2.9m (2011: € 4.6m), and adjusted net income of EUR 1.1m (2011: € 2.0m).