LANXESS Specialty Chemicals has successfully issued approximately 500 million euros of hybrid bonds in European capital markets. The purpose of the transaction is to acquire Chetura, a US chemical company.
LANXESS Chief Financial Officer Michael Pontzen said: From the reflection of the capital market, the response of our first bond issue was enthusiastic, indicating that the market accepts our bonds and corporate coupons very high.
LANXESS has a 60-year bond issue and the coupon is a discount of 4.5%. Listed on the Luxembourg Stock Exchange, each with a face value of 1,000 Euros. LANXESS can make its first redemption in June 2023, and this bond belongs to other financial liabilities of LANXESS.
According to Oliver Stratmann, Head of Finance and Investor Relations at LANXESS: Since the three bonds were issued in September, we have raised enough funds to plan the acquisition of Chemtura in a short period of time. In addition to strictly following the original financial strategy, we also strive to maintain an investment reputation rating. Hybrid bonds are designed to be issued in such a way that rating agencies treat 50% of them as corporate assets.
The transaction was supported by a banking consortium consisting of JP Morgan Chase, Deutsche Bank, Barclays Bank and Merrill Lynch.