peuterey daunenmantel Continental Corporation Annual Report 2007
in May 2004 and guaranteed by Continental AG, in accordance with the terms of the bond. The conversion ratio of 1,998.1198 shares for each 100,000 nominal value of the bond corresponds to a conversion price per share of 50.05 (previously 50.65). In March 2007, after the Annual Shareholders’ Meeting, the bondholders exercised their conversion rights and converted bonds with a principal amount of 0.8 million; this reduced the original issue amount from 400.0 million to 377.1 million. The remaining value of the preferential coupon rate related to the bond is 36.7 million (2006: 46.6 million).
The conversion led to the creation of 15,794 shares of Continental AG. Claims arising from remaining fractions of shares were settled in cash. The convertible bond changed as follows in the year under review:
The fair values of the Company’s financial liabilities as of December 31, 2007 and 2006 were determined by discounting all future cash flows at the applicable interest rates for comparable instruments with the same remaining maturities. For all other primary financial instruments, the carrying amount is equivalent to the fair value.
CTSA, Continental Tyre South Africa (Pty.) Ltd., Port Elizabeth, South Africa
Conti Teves, Continental Teves Hungria Kft., Veszprém, Hungary
Siemens VDO Mechatronic GmbH Co. KG, Stollberg, Germany
On December 31, 2007, approved credit lines amounting to 2,201.2 million (2006: 2,
361.3 million) had not been drawn down, of which 1,797.6 million (2006: 1,700.0 million) were long term credit commitments. The loan granted by the European Investment Bank (EIB), Luxembourg, was fully drawn down in 2007.
In the year under review, the Continental Corporation utilized its commercial paper program, its asset backed securitization programs, and its various bank lines to meet short term credit requirements. In July 2007, two banks made a commitment to Continental AG to provide 13.5 billion to refinance the acquisition of Siemens VDO. The loan was successfully syndicated in September and October, 2007. The financing involved a total of 39 banks. To facilitate the timely repayment of debt, Continental AG placed 14.65 million new shares with institutional investors at the end of October, 2007 as part of a capital increase at a price of 101.00 per share. Thus, the loan of 13.5 billion was reduced already in December, 2007, by the amount received of just under 1.48 billion. The committed amount was accordingly reduced to 12.02 billion; 10.22 billion was drawn down on December 31, 2007.
The indebtedness of 13,126.8 million will mature in the next five years and thereafter as follows: December
EBIT. Earnings Before Interest and Taxes. EBIT represents the results of operations. Since 2002, when the amortization of goodwill was discontinued, EBITA has been equal to EBIT.