Altana places €200 Million Promissory Note to Refinance Loan

German chemical producer Altana said its promissory note with a volume of €200 million issued to partially refinance its acquisition of Rockwood's rheology business was four times oversubscribed. Due to the strong demand, the loan amount was increased from €160 million during the issuing process.

Altana's chief financial officer Martin Babilas said the success of the paper is "a further consistent step in our financing strategy that aims at a sound basis for further growth and flexible repayment options, along with favorable financing terms." The new loan bears an interest rate of 2.1% and has debt maturities of three and a half to seven years.

The Bad Homburg-based firm completed its acquisition of the business on 1 October for $635 million. To finance the deal, a consortium of seven banks provided financing of €300 million. Altana said the portion of the loan not refinanced via the note will be settled within the next two to three years directly from its cash flow.