ThyssenKrupp wins banks' support to extend credit lines: magazine


Germany's ThyssenKrupp won support from banks to extend credit lines worth 2.5 billion euros ($3.4 billion) as the steelmaker is grappling with billions of debt and its ailing Americas business, WirtschaftsWoche reported.

Pressure has been rising on Chief Executive Heinrich Hiesinger to raise cash as the company is at risk of breaching loan covenants when its financial year ends on September 30.

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A consortium of banks has now agreed to renew the credit lines, the weekly business magazine said on Saturday, without citing the source of the information.

Separately, WirtschaftsWoche said a planned share sale may reap as much as 1.6 billion euros, including a so-called hybrid bond that will carry an 8-percent interest rate.

Capital-raising measures are positively received by investors, especially in Germany where investors would be willing to offer up even more funds, the magazine said.

A company spokeswoman declined to comment on the report.

Still, ThyssenKrupp may fail to sell its loss-making operations in Brazil by an end-of-September target, Frankfurter Allgemeine Sonntagszeitung reported, citing CEO Hiesinger. ($1 = 0.7402 euros)

(Reporting by Andreas Cremer. Additional reporting by Matthias Inverardi; editing by Ron Askew.)