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PRESS RELEASE
CHG-MERIDIAN's second promissory
note loan proves popular with the
capital markets

Banks and other investors make funding of €50 million
available to CHG-MERIDIAN

Strong credit rating ensures brisk demand

New form of funding becomes a successful model for
CHG-MERIDIAN
Date: August 8, 2014
Weingarten, August 8, 2014
CHG-MERIDIAN, a mid-sized technology management company, successfully placed a
promissory note loan for €50 million in July 2014, following on from its first promissory
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note loan in 2013. This means that banks and other investors from Germany, Austria, and
Switzerland are now benefiting from the returns generated from CHG-MERIDIAN's
underlying-transaction-based business model, which focuses on technology consulting,
remarketing of used equipment, and lease finance for technology portfolios of all sizes.
The promissory note loan was placed on the market by the arranger, Commerzbank AG.
Orders flooded in right from the start of the marketing phase, and the promissory note
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loan was ultimately significantly oversubscribed. All orders were at the lower end of the
marketing range at 150 basis points over the benchmark rate.
“Every financing transaction is based on an underlier,” said Volkmar Lange, Head of
Group Treasury at CHG-MERIDIAN. “If, on the one hand, we originate leases with a
volume of around €1 billion per year, we need the same amount of funding on the other.”
CHG-MERIDIAN's funding rests on a number of pillars. The main pillar (accounting for at
least 60 percent at present), is finance through forfaiting, in which the credit risk is
transferred to banks. This is supplemented by carefully selected direct bank loans and
syndicated loan packages, for which CHG-MERIDIAN can turn to a very broad pool of
funding partners. The funds from the promissory note loan will largely be used for shortterm financing activities.
According to Lange, CHG-MERIDIAN's creditworthiness is highlighted by the fact that the
latest promissory note loan was significantly oversubscribed with soft orders after just a
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brief marketing phase and binding orders ultimately added up to more than €100 million. “The market
recognizes and appreciates our credit standing.” Despite the promissory note loan being oversubscribed,
«EFax»
only the €50 million initially offered was raised because the company is adhering strictly to its long-term
funding strategy.
Re: Microsoft Software
CHG-MERIDIAN has plans for further transactions over the next two years. “We will place a series of four
promissory note loans, each with a maturity period of four years and a volume of €50 million,” explained
Lange. “Over the long term, this will provide us with short-term funding for our volume of business and
ensure that our group of companies has the funding base it needs for further growth.”
About CHG-MERIDIAN
CHG-MERIDIAN is one of the world's leading non-captive providers of technology management in the fields of IT, telecommunications, industry,
and healthcare. CHG-MERIDIAN has a workforce of approximately 800 professionals and offers one-stop management of customers' technology
infrastructure. Its product range includes consulting, financial and operational services, as well as remarketing services for used equipment at its
proprietary Technology and Service Center. CHG-MERIDIAN offers efficient technology management for large corporations, small and mediumsized enterprises, and public-sector clients. It provides services for over 8,000 customers around the world and manages technology investments
in excess of €3.5 billion. More than 1,600 of its customers also monitor their technology portfolios online using the TESMA© Online technology and
service management system. The company has a global presence with 34 sites in 19 countries and it is headquartered in Weingarten, southern
Germany.
Efficient Technology Management by CHG-MERIDIAN®