May 11, 2020 / 1:23 PM / 20 days ago

German companies seek state aid to cope with coronavirus

(Reuters) - A number of German companies have taken out state-backed loans as part of the federal government’s aid package to deal with the coronavirus crisis.

Here is a list of companies that have applied for the package or plan to do so:

K+S

Indebted German mineral miner K+S slashed its dividend proposal to 4 euro cents per share ($0.04) from a previously proposed 15 cents per share to become eligible for state aid.

The company said it was eyeing loans backed by Germany’s development bank KfW, but declined to comment on whether it has already applied for the loan or how big it could be.

LUFTHANSA

Lufthansa is negotiating a 9 billion euro ($9.7 billion) bailout with Germany’s economic stabilisation fund to ensure its future, the airline said on May 7.

The “stabilisation package” includes a non-voting capital component - known as a silent participation - plus a secured loan and a capital increase which may leave the government with a shareholding of up to 25% plus one share, the company said.

Economy Minister Peter Altmaier said on Sunday that Germany is working on a “concrete model” to aid Lufthansa, amid a political row over whether the state should play an active role in the airline.

THYSSENKRUPP

Thyssenkrupp has secured about 1 billion euros in state aid, a source close to the matter said. The KfW loan should help the conglomerate to get through until money from the sale of its elevator division arrives.

PUMA

The sportswear maker, which in April proposed suspending its dividend due to the pandemic, said it had secured a new revolving credit facility of 900 million euros, including 625 million from KfW.

ADIDAS

The sportswear maker, which was forced to suspend dividend payments as a condition of a government-backed loan earlier this month, said it would replace that loan with other financial options as soon as possible.

Manager Magazin said Adidas was planning a multi-billion euro bond.

The company initially agreed to take a 2.4 billion euro government-backed loan on April 14 after it was hit by the closure of stores due to global coronavirus lockdowns and by the postponement of the Olympic Games and Euro soccer tournament.

TUI

To cope with the COVID-19 impact, the holiday operator received a 1.8-billion euro loan commitment from KfW to increase the company’s existing 1.75 billion euro credit agreement.

“The commitment of the KfW bridging loan is an important first step for TUI to successfully bridge the current exceptional situation,” said Chief Executive Fritz Joussen.

CECONOMY

The electronics supplier has secured a government-backed loan of 1.7 billion euros to mitigate the impact of the coronavirus on its business following forced shop closures.

Ceconomy, which had put 20,000 employees on short-time work in Germany but began reopening stores in the country last week, said one condition of the loan is that the company suspend dividend payments.

SIXT

The German car rental company said on Wednesday it had signed a syndicated loan agreement with a bank consortium including state-owned KfW. The agreement is a revolving credit line of up to 1.5 billion euros with a term of up to two years.

Among other conditions, Sixt has agreed to waive dividend payments during the term of the loan, except for the annual minimum dividend of 0.05 euros paid for preference shares.

LEONI

The battered German auto supplier will stay afloat with state aid of several hundred million euros. The financing should compensate for delayed payments following halted car production as well as for ongoing costs.

Leoni said on April 20 it was in advanced talks with its banks to obtain a loan, 90% of which would be guaranteed by the federal government and the state of Bavaria.

The firm’s banks, which are supposed to bear the rest of the risk, have already shown their support to the plan.

DEUTSCHE BAHN

The federal government is planning billions in support measures for the state-owned rail operator against the damage caused by the pandemic, according to a Funke media group report.

As the operator promises massive savings in personnel and material costs, the government proposed to compensate the remaining losses of between 6.9 and 8.4 billion euros with a capital increase. There is also a plan to increase the group’s debt limit.

CONDOR

Germany’s government and the federal state of Hesse have agreed to provide charter airline Condor with loans worth 550 million euros, the economy minister said at the end of April, after the owner of Poland’s LOT pulled out of a deal to buy the airline.

Condor said in a separate statement that it would receive a loan of 294 million euros as coronavirus aid and an additional 256 million euros to completely refinance a bridging loan it received after the collapse of parent company Thomas Cook.

($1 = 0.9242 euros)

Compiled by Bartosz Dabrowski, Linda Pasquini and Veronica Snoj in Gdansk with contributions from Frankfurt, Duesseldorf and Munich; Editing by Tomasz Janowski, Emelia Sithole-Matarise and Jan Harvey

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