Implementing a €60 Million Bond with Hauck & Aufhäuser

A mid-sized industrial company in the automotive sector approached Neofyn to secure

funding for M&A projects and investments in new technologies. Given the challenges in the

German market, the company required a financing solution that would enable growth without

diluting equity. Neofyn worked closely with the client and Hauck & Aufhäuser, a leading

German private bank, to design and implement a €60 million bond that effectively met the

company’s needs.

Assessing Financing Options

Neofyn collaborated with the company’s leadership to evaluate various financing strategies.

After careful consideration, the team determined that leveraging a bond would be more

efficient and beneficial than pursuing equity-based financing. This approach allowed the

company to maintain its ownership structure while securing the necessary capital for future

growth.

Designing the Bond Offering

The bond, sized at €60 million, was tailored to support the company’s strategic goals:

facilitating M&A activities and technology investments to strengthen its position in the

automotive market. Neofyn structured the bond with terms that balanced investor appeal and the company’s financial sustainability.

Roadshow and Book-Building Process

Neofyn, in collaboration with Hauck & Aufhäuser, organized an engaging roadshow to attract

potential investors. Over the course of 2.5 months, the team presented the company’s vision,

growth potential, and market opportunities to a diverse group of institutional and private

investors. The client’s position as a key player in the automotive supply chain, coupled with

the potential for market consolidation, resonated strongly with investors.

Outcome and Market Reception

The bond offering was highly successful, with the book fully subscribed in record time.

Investors were impressed by the company’s strategic direction and the opportunities

presented by the automotive sector’s evolving landscape. The €60 million raised provided the client with the necessary resources to pursue M&A projects and make significant investments in technology.

Securing the Future with Additional Financing

Recognizing the client’s long-term needs, Neofyn also structured an €80 million bond to

secure funding for future projects. This proactive step ensured the company could confidently navigate the challenging German market while maintaining a competitive edge.

The Results

This case illustrates Neofyn’s expertise in designing and executing complex financing

solutions. By leveraging the bond market and partnering with Hauck & Aufhäuser, Neofyn

helped the client achieve their strategic goals efficiently and effectively. The success of this

project underscores the value of innovative financing strategies in driving growth and

creating shareholder value.