Lanxess Bond Boosts Chemtura Deal
German chemical producer Lanxess has placed two euro-denominated benchmark bonds on the European capital market for the financing of its planned $2.5 billion acquisition of the US specialty chemicals group Chemtura. The Cologne-based company said the bond issue, underwritten by a consortium comprising J.P. Morgan, Barclays, Citi, Commerzbank and UniCredit, “attracted wide interest by national and international investors” and was “significantly oversubscribed.”
Each of the bonds has a volume of €500 million. One has a five-year term and a 0.25% coupon, the other a 10-year term and a 1.0% coupon. Both are listed on the Luxembourg Stock Exchange and will be traded in denominations of €1,000 nominal value, the Cologne-based company said. “The quick and successful placement of the two bonds confirms our high credit-worthiness and our good access to the capital markets,” said CFO Michael Pontzen. He said the chemical producer was able to take advantage of the “currently favorable market environment for corporate bonds”.
“In this way we are already replacing a portion of the bridge financing for the planned acquisition of Chemtura at attractive terms,” said Oliver Stratmann, head of Treasury and Investor Relations at Lanxess.
