Schaffhausen-based Georg Fischer AG (GF) continues to make headlines: After a radical restructuring of the company structure, the company is now taking out an enormous loan totaling 650 million francs – the highest in the company’s history. The loan is financed by UBS and Zürcher Kantonalbank (ZKB).
Article from October 30, 2024
The new debt was divided into two parts, so-called tranches. The first tranche of 300 million francs has a term of three years and an annual interest rate of 1.25 percent. The second tranche of 350 million francs has a term of seven years with an interest rate of 1.55 percent.
How much money ZKB and UBS are each borrowing was not disclosed in the media release on Wednesday evening.
The managing director originally planned to take out a loan of 400 – 500 million francs. Apparently the announced restructuring of the group led to such enthusiasm among stock traders that a significantly larger loan could be taken out.
Among other things, the loan is intended to repay debts that arose during the takeover of the Finnish pipeline specialist Uponor, according to the CEO.
Article from November 7, 2023
The funds will be paid out on December 11, 2024. The GF share achieved an increase of 2.43 percent on Wednesday.
Guest 2: A positive share price can provide Georg Fischer AG with more leverage for future investments and initiatives. Investors often respond favorably to a company that successfully navigates challenges and demonstrates growth potential. What’s your perspective on how this financing will influence their competitive stance in the market?
Section 1: Changes in Georg Fischer AG and the Need for Financing
Guest 1: Georg Fischer AG has recently undergone a major restructuring and is now borrowing a record amount of 650 million Swiss francs. Can you tell us about these changes and the reasoning behind the large loan?
Guest 2: Yes, certainly. Georg Fischer AG has been focusing on liquids, with the sale of its core business and other strategic moves. The loan is necessary to finance the transition and to pay off debts incurred during the acquisition of Uponor, a Finnish pipeline specialist. What do you think about this decision, given the Covid-19 pandemic and its impact on global economies?
Section 2: The Diversification of Georg Fischer AG
Guest 1: The company has been diversifying into new areas. How do you see this decision playing out in the long run, especially considering the uncertainty around global economies?
Guest 2: That’s a great question. Diversification can be risky, but it can also lead to growth and stability. I believe that Georg Fischer AG’s decision to focus on liquids was strategic and aligns with market needs. However, managing different business units requires careful planning and execution. Do you agree?
Section 3: The Lenders and the Terms of the Loan
Guest 1: UBS and Zürcher Kantonalbank were chosen as the lenders for this massive loan. What was the process behind choosing these institutions, and what role did they play in the successful negotiation of the loan terms?
Guest 2: UBS and Zürcher Kantonalbank are both well-respected financial institutions with experience in large-scale lending. Their involvement in this loan shows that Georg Fischer AG remains attractive to investors despite recent challenges. Additionally, the fact that they agreed to such favorable terms suggests confidence in the company’s future prospects. What do you think about the role of these banks in the Swiss economy?
Section 4: The Impact on Georg Fischer AG’s Share Price and Future Plans
Guest 1: The news of the loan and its favorable terms has positively impacted Georg Fischer AG’s share price. How do you see this affecting the company’s future plans, such as
