HGears AG Group announces successful signing of debt refinancing on improved terms

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DGAP-News: hGears AG / Keyword (s): Funding
22.12.2021 / 08:00
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HGears AG Group announces successful signing of debt refinancing on improved terms

Schramberg, December 22, 2021. hGears AG (“hGears” or “Company”), a global manufacturer of high-precision gears and components focused on products for electric mobility applications, today announces that it has entered into a new credit facility agreement with a consortium of banks for a total amount of 60 million euros.

The new credit agreement includes a term loan of 15 million euros and a revolving credit line of 45 million euros. The agreement is for a period of 5 years, providing for an extension of more than 3 years to the current facility agreement of 32 million euros.

The new agreement will be used to refinance the Group’s existing debt of 20 million euros, maturing in September 2023. While the revolving credit facility will be used for CAPEX growth in accordance with future capacity utilization and the rise of new projects.

Under the terms of the deal, the refinancing will significantly reduce debt costs by about 255 basis points, from ~ 3.50% to ~ 0.95% per annum. As agreed with the consortium banks, up to 20 million euros of the new credit agreement will be converted in 2022 into a favorable ESG loan approved by the government.

The refinancing is expected to be completed in January 2022.

Daniel Basok, CFO of hGears, adds: “hGears has received strong support from a group of three international banks, confirming the strengthened financial position of the Group obtained since the Company’s IPO in May 2021. The new agreement of facility has a considerably lower interest rate. , which will immediately benefit the cash flow and profitability of the company and underpin our strong financial profile for the new year. “

Contact
cometis SA
Dr Daniela Diedrich
Unter den Eichen 7
65195 Wiesbaden

T: +49 611 205 855 – 22
E: [email protected]

About hGears
hGears is a global manufacturer of mission critical, high precision gears and components, with a focus on products for electric mobility applications. The strategic direction of the company is on the business area of ​​electric mobility where products include gears, shafts and other mission critical components for use in combustion-free electric drive applications for bicycles. electric, electric and hybrid vehicles. In the e-bike segment, hGears is the European market leader in the supply of high-precision gears and components and its parts are contained in around two million of the 4.6 million e-bikes sold in Europe in 2020. This positions the company to capitalize on the dynamically growing end markets of electric bicycles and electric and hybrid vehicles. hGears has three distinct business areas for which it develops and manufactures high precision components: e-Mobility, e-Tools and Conventional (i.e. premium and luxury cars, motorcycles and industrial applications ).

hGears combines over 60 years of experience in advanced machined steel metal processing and state-of-the-art metal powder production. It is one of the few companies to offer both processes to its customers worldwide. hGears works with its customers in a “co-development” role to design components and find technologically optimal solutions to meet customer specifications. HGears’ premier customer base includes a number of major suppliers as well as original equipment manufacturers. The Company enjoys long, stable and lasting relationships with its partners and has worked with many key clients for over 15 years.

hGears is headquartered in Schramberg, Germany, and operates worldwide with production facilities in Schramberg, Germany, Padua, Italy, and Suzhou, China. Visit hGears on the Internet at www.hgears.com

22.12.2021 Dissemination of a Corporate News, transmitted by DGAP – a service of EQS Group AG.
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