STIHL receives financial advice from Taylor Wessing on groundbreaking group financing, featuring a novel organizational design
In a significant move to enhance its financial flexibility and efficiency, German family-owned company STIHL International GmbH has introduced an innovative group-wide financing solution. This pioneering structure combines the documentary rigour of syndicated financing under Loan Market Association (LMA) standards with the operational flexibility and economic benefits of bilateral credit agreements.
### Key Features of the Financing Solution
At the heart of this structure is a Common Terms Agreement (CTA) that standardizes overarching regulations between STIHL and the participating core banks in a single document. Based on the CTA, STIHL concluded individual bilateral loan agreements featuring harmonized terms within a coordinated regulatory framework, similar to ancillary facilities commonly seen in syndicated financing.
STIHL self-arranged the transaction, enhancing its autonomy in negotiating individual loan conditions while still operating under a harmonized financing umbrella. The entire contractual workflow, including commenting on documents, allocating financing volumes, and confirming disbursement requirements, was managed via the digital platform vc trade for seamless communication and processing.
### Role of Taylor Wessing, SEB, and vc trade
Taylor Wessing, a leading law firm, provided comprehensive legal advice and led the structuring of this innovative financing approach. Frankfurt-based Partner Clemens Niedner headed the advisory team, guiding STIHL through the design and implementation of this novel group financing arrangement.
SEB served as the documentation agent, playing a central role in overseeing the legal documentation process and ensuring alignment between STIHL and the financing banks. The digital platform vc trade was pivotal for contractual processing and communication, enabling STIHL and the participating banks to efficiently negotiate, comment on documents, allocate financing, and confirm disbursements digitally.
### Significance
This financing solution breaks new ground by allowing STIHL to benefit from the operational and economic advantages of bilateral loans under a framework that preserves the benefits of syndicated loans’ standardized terms. It achieves a balance between institutional flexibility and legal certainty while leveraging digital tools to streamline contract management.
STIHL, founded in 1926 and headquartered in Waiblingen, Germany, specializes in developing and producing power tools for forestry, gardening, landscaping, and construction. The company has been the world market leader in chainsaws since 1971 and is active in more than 160 countries.
The financing solution allows financiers to support STIHL under a harmonized, term-linked financing structure, while STIHL maintains independence in negotiating individual conditions. Clemens Niedner, a partner at Taylor Wessing, commented that the financing represents a new ground being broken with STIHL.
[1] This article is based on information provided by the involved parties and has been prepared for informational purposes only. It does not constitute legal, financial, or investment advice. Readers are encouraged to consult their own advisors before making any business decisions.
- The innovative financing solution pioneered by STIHL International GmbH, such as the one detailed in this article, blends the legal stringency of syndicated financing under Loan Market Association (LMA) standards with the operational flexibility and economic benefits of bilateral credit agreements, all while operating within a harmonized regulatory framework.
- The digital platform vc trade played a crucial role in the contractual workflow of this groundbreaking financing arrangement, facilitating seamless communication and processing between STIHL and the participating banks, allowing for efficient negotiation, commenting on documents, allocation of financing volumes, and confirmation of disbursement requirements.
