June 6, 2019

VTG completes capital increase

Railcar lessor VTG Aktiengesellschaft in May completed the capital increase against cash contributions launched at the end of April.

VTG issued 5.48 million new no-par-value ordinary shares with dividend entitlement as of 1 January 2018.

VTG shareholders in the Federal Republic of Germany and in the Grand Duchy of Luxembourg were able to acquire four new shares at a per share subscription price of €52.90 ($59.70) for every 21 existing shares held.

The two major shareholders, Joachim Herz Stiftung and Warwick Holding GmbH (an indirect subsidiary of funds advised by Morgan Stanley Infrastructure), exercised all subscription rights to which their existing shareholdings at the beginning of the subscription period entitled them.

At the end of the subscription period, Warwick Holding also acquired all unsubscribed new shares at the subscription price.

Of net proceeds of about €283 million from the capital increase, around €30 million will be used to partially redeem a privately placed hybrid bond issued to fund the Nacco acquisition in 2018.

The remainder of the proceeds will give the VTG Group greater financial flexibility and will, at the beginning of August, be used to redeem VTG’s listed hybrid bond at a nominal amount of €250 million plus interest.

Berenberg and Crédit Agricole CIB acted as joint global coordinators for the increase.