BRIEF

on Rosenbauer International AG (isin : AT0000922554)

Rosenbauer International Secures Its Financial Future Through Refinancing and Capital Increase

NuWays AG has recently upgraded its assessment of Rosenbauer International, indicating a strong buy recommendation with a target price of EUR 54.00. The Austrian firefighting equipment manufacturer has successfully negotiated a refinancing agreement with its major lenders and note holders, aimed at suspending and redefining existing covenants until November 2025. This strategic move comes as a response to Rosenbauer's challenges in meeting its financial covenants during FY23, with an equity ratio and net debt to EBITDA ratio not aligning with set benchmarks.

Further bolstering its financial position, Rosenbauer plans to issue at least 3.4 million new shares, potentially generating approximately EUR 66 million in gross proceeds. This capital increase is intended to enhance the company's balance sheet and facilitate bond repayments. Significantly, Rosenbauer's operational performance has shown marked improvement despite previous supply chain difficulties, with a steady increase in its EBIT margin throughout FY23 and an optimistic outlook for FY24.

The agreement with bondholders and the planned capital infusion are essential steps in ensuring Rosenbauer's ongoing financial stability. With strong demand and a high order backlog, the company's operational business remains robust, positioning it well for future success. NuWays AG reiterates its confidence in Rosenbauer's potential, emphasizing the positive aspects of the refinancing and capital increase initiatives.

R. E.

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