HELLA strengthens liquidity in an economically challenging market environment

Lippstadt, 20 May 2020. The internationally positioned automotive supplier HELLA has concluded a new syndicated credit facility of over € 500 million with a term until June 2022 and an option to extend the term by one year. With the new credit line, the lighting and electronics specialist is strengthening its liquidity and rating. The new credit facility, which is being made available by seven financial institutions from the existing core banking group, was completed within a few weeks.

"In view of the high level of uncertainty caused by the worldwide COVID-19 pandemic and the resulting consequences for the global automotive industry, we have created the new credit facility as an additional precautionary measure despite the company's good liquidity situation," said HELLA CFO Bernard Schäferbarthold. "We have thus further strengthened our financial flexibility and security and, with a financial cushion of now around € 2 billion in total, we are well positioned to successfully meet possible market challenges resulting from the COVID-19 pandemic."

Before the new syndicated credit facility was concluded, HELLA already had cash and cash equivalents of around one billion euros at its disposal, and at the beginning of April 2020 it had drawn down an existing credit facility of € 450 million for precautionary reasons.