Led by Frankfurt-based Partner Clemens Niedner Taylor Wessing has advised Stihl International GmbH (STIHL) on the implementation of a pioneering group-wide financing solution. The customised structure combines the documentary standards of classic syndicated financing according to LMA specifications with the operational flexibility and economic advantages of bilateral credit agreements and serves to cover seasonal fluctuations in working capital management.
At the centre of the transaction stands an innovative Common Terms Agreement (CTA), which bundles all overarching regulations between STIHL and participating core banks in a standardised document. On this basis, individual bilateral loan agreements with harmonised terms and a coordinated regulatory framework were then concluded - comparable to the structure of so-called ancillary facilities.
The transaction was self-arranged by STIHL and supported by SEB as documentation agent. STIHL consistently used the digital platform vc trade for contractual processing and communication, both for commenting on the documents and for allocating the financing volumes and confirming the disbursement requirements.
"With this financing, we were able to break new ground together with STIHL," comments Clemens Niedner, the responsible partner at Taylor Wessing. "The financiers are now supporting STIHL under the umbrella of harmonised, term-linked financing in the typical LMA style - but without taking away STIHL's independence in negotiating individual conditions."
A special feature of the structure is the elimination of the traditional agent function: the ongoing administration of the financing relationships will in future be managed entirely by STIHL's treasury department via the vc trade platform.
STIHL is a German family-owned company based in Waiblingen and active in more than 160 countries. Since its foundation in 1926, STIHL has been developing and producing power tools for forestry, gardening, landscaping and construction. The company has been the world market leader in chainsaws since 1971.
Legal advisor STIHL International GmbH
Taylor Wessing Germany: Clemens Niedner (lead), Moritz Probst and Victoria Meyer, all Banking & Finance, Frankfurt
Inhouse STIHL: Dr Jan Göppert
Treasury STIHL: Ingo Schorn
