Debt-Laden Continental Plans €1.1B Rights Issue

Law360, New York (January 7, 2010, 3:16 PM EST) -- German auto parts supplier Continental AG plans to raise €1.09 billion ($1.56 billion) through a rights issue to help reduce debt it took on during its acquisition of Siemens AG's automobile electronics unit in 2007.

The capital increase is part of a refinancing plan Continental reached with lenders in December that will allow it to pay down €3.5 billion in debt due in August 2010, the company has said.

A syndicate led by Deutsche Bank AG, Goldman Sachs International and JPMorgan Securities Ltd. have agreed to...
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