Shearman & Sterling LLP represented the initial purchasers, led by Citigroup Global Markets Limited and The Royal Bank of Scotland plc, in connection with offering of € 750 Mio. 8.50% Senior Secured Notes due 2015 by Conti-Gummi Finance B.V. The notes, which are guaranteed by Continental AG and certain of its subsidiaries, are the first issue of secured high yield bonds under the new German Bond Act (Schuldverschreibungsgesetz) that came into effect in 2009. Continental will use the offering proceeds to repay a portion of the outstanding amounts under syndicated credit facilities that were entered into in connection with the acquisition of Siemens VDO Automotive in 2007.

The Shearman & Sterling team advising the initial purchasers included partners Marc Plepelits (Frankfurt-Capital Markets), Winfried Carli (Munich-European Finance), and Johannes Frey (Munich-Tax), and associates Axel Korth (Munich-European Finance), Alexander Schiel (Frankfurt-Capital Markets), Norbert Mückl (Munich-Tax) and Derek Kershaw (New York-Tax).

Earlier this year Shearman & Sterling also advised the underwriters in connection with the rights issue of Continental AG.