FACC strengthens financing structure and liquidity

• Bond for EUR 90 million successfully redeemed
• New EUR 60 million financing line completed

Against the background of considerable challenges posed by COVID-19, FACC AG is strengthening its financing structure and liquidity. The company is thus preparing itself for the further implementation of the cost reduction program started in 2019.

As planned, FACC AG redeemed the corporate bond (ISIN: AT0000A10J83) issued in 2013 for 90 million euros on 24 June 2020. In addition to existing syndicated credit lines, the basis for this was a promissory note loan for EUR 70 million issued in July 2019. Practically at the same time as the bond was repaid on time, negotiations were concluded on a new additional financing line with a volume of EUR 60 million as part of the COVID-19 assistance of the Austrian Kontrollbank (OeKB).

FACC Chief Financial Officer Aleš Stárek commented: "Despite the expected revenue and earnings losses due to COVID-19 in the current and probably also in the coming year, we can thus secure the necessary liquidity for the undiminished continuation of our cost reduction program. The program, which is expected to generate total annual savings of up to EUR 50 million, is already beginning to take effect in some areas".

In order to prepare itself even better for the serious effects of the pandemic on the aviation and aerospace industry, FACC recently defined an additional "corona savings program" of EUR 15 million, which is also already being implemented. In addition, FACC is planning talks with the core banks in fall about the temporary adjustment of the current syndicated financing to the changed conditions caused by COVID-19. Aleš Stárek: "With all these measures to strengthen our liquidity, we are also improving our starting position to overcome the Corona crisis. A further positive factor in this regard is our solid equity ratio, which we would like to maintain by waiving the dividend payment for the 2019 financial year".