KION Group AG has used the proceeds of its IPO (Forkliftaction.com News #619) to repay a significant bank debt, and says the optimisation of its finances will allow it to move its global expansion plans forward.

The company has repaid in full its debt under the amended senior facilities agreement using the EUR1.08 billion (USD1.419 billion) from the IPO, the capital increase subscribed by Chinese company Weichai Power Ltd in the context of the IPO, and available cash under a new revolving credit facility (RCF).

Its improved credit profile enabled it to use a new RCF for EUR995 million (USD1.3 billion), which matures in 2018. The facility is provided by a group of KION's relationship banks.

Under the RCF, about EUR175 million (USD229 million) will be drawn to repay in full the outstanding aggregate principal amount of the senior secured floating rate notes due in 2018.

As a result of this repayment, the conversion of a shareholder loan in the course of the IPO and the repayment of the bank term debt under the senior facilities agreement, the remaining term debt outstanding for KION consists of senior secured notes for EUR325 million (USD425 million) maturing in 2018 and senior secured notes for EUR650 million (USD850 million) maturing in 2020.

KION says it does not intend to make further debt repayments for the time being from the proceeds of the IPO.

CFO Thomas Toepfer says: 'With these steps, KION GROUP AG further optimises its financing structure. This new and very solid capital structure forms the basis for driving forward our successful global expansion."

The KION Group, comprising the six brands Linde, STILL, Fenwick, OM STILL, Baoli and Voltas, is the largest manufacturer of industrial trucks in Western and Eastern Europe (in terms of unit sales in 2011). It employed over 21,000 people and generated revenue of EUR4.73 billion (USD6.187 billion) in 2012. KION Group is present in over 100 countries and claims to have a global market share of about 15%.