ZF Friedrichshafen plans new debt for Wabco purchase

Chicago, March 28 – ZF Friedrichshafen AG may issue bonds for its purchase of Wabco Holdings Inc., according to a company news release and investor presentation.

Under the agreement, ZF will acquire all outstanding shares of Wabco for $136.50 per share in an all-cash transaction for an equity value of over $7 billion.

A portion of the acquisition financing could be comprised of either loans or bonds, according to the investor presentation.

Due to the cash flow profile of both companies, ZF expects to reduce financial leverage significantly following the completion of the transaction.

Closing is expected in early 2020, subject to approval by Wabco’s shareholders, regulatory approvals and other customary conditions.

ZF Friedrichshafen is a Germany-based provider of driveline and chassis technologies. Wabco is a Bern, Switzerland-based supplier of technologies and services that improve the safety, efficiency and connectivity of commercial vehicles.

Sara Rosenberg contributed to this story.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.