Continental AG announces potential market stabilization measures

Published 15/05/2025, 08:54
Continental AG announces potential market stabilization measures

FRANKFURT - Continental AG (OTC:CTTAY), the German automotive manufacturing company, has indicated that stabilization measures may be implemented in connection with its new 3.5-year euro-denominated bond offering. The announcement was made today by Deutsche Bank AG (ETR:DBKGn), Frankfurt, which is acting as the Stabilization Coordinator.

The stabilization period for the securities, which have the International Securities Identification Number (ISIN) XS3075393499, is expected to commence today and could extend until July 3, 2025. During this time, the Stabilization Managers, which include BofA Securities, Deutsche Bank, J.P. Morgan, and UniCredit, may engage in transactions to support the market price of the securities.

The initial price guidance for the bond issue is set at mid-swap (MS) plus 115-120 basis points (bps). The total aggregate nominal amount of the bond offering has yet to be confirmed.

Stabilization activities are intended to prevent or mitigate price volatility in the aftermath of a new security issue. The Stabilization Managers have the authority to over-allot securities, which means they can sell more securities than initially offered, to facilitate this process. However, there is no guarantee that stabilization will occur, and if initiated, it may be stopped at any time.

This pre-stabilization notice clarifies that any actions taken will comply with all relevant laws and regulations, including the EU Market Abuse Regulation and the UK Financial Conduct Authority’s Stabilisation Binding Technical Standards.

The securities are targeted at qualified investors in the European Economic Area and the United Kingdom (TADAWUL:4280), as defined by the respective Prospectus Regulations, and are not intended for distribution in the United States or any jurisdiction where such distribution would be unlawful.

This announcement serves as an informational notice and does not constitute an offer to underwrite, subscribe for, or otherwise acquire or dispose of any securities of Continental AG. The information is based on a press release statement and is intended for professional investors and those with relevant knowledge of investment matters.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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