Henkel successfully places €2.2 billion bonds

Henkel successfully places €2.2 billion bonds

6:13 AM, 12th September 2016
Henkel successfully places €2.2 billion bonds

DUSSELDORF, GERMANY: Henkel AG has successfully placed bonds with a value of €2.2 billion. The proceeds will be used to refinance the short-term bank credit for the acquisition of The Sun Products Corporation. The acquisition valued at around €3.2 billion ($3.6 billion) including debt, was closed on September 2016. It will be financed by a combination of a 3-year bank loan of about €1.0 billion and the proceeds of the bonds.

In total, Henkel placed 4 fixed-rate tranches in three different currencies: a 500 million Euro bond with a maturity of 2 years, a coupon of 0 percent pa and a negative yield of -0.05 percent pa as well as a 700 million Euro bond with a maturity of 5 years and a coupon and a yield of each 0 percent pa. Furthermore a 750 million US Dollar bond on the Eurodollar market with a maturity of 3 years and a coupon of 1.5 percent pa and a 300 million British Pound bond with a maturity of 6 years and a coupon of 0.875 percent pa.

“The successful placement of the bonds reflects both Henkel's high credit quality and our excellent access to the capital markets,” commented Henkel CFO Carsten Knobel. “With the transaction we take advantage of the favorable environment in the corporate bond markets. It allows us to secure the required financing at attractive conditions.”

Joint active book runners were BNP, Deutsche Bank and JP Morgan. Henkel’s current long-term rating is A by Standard & Poor’s and A2 by Moody's, both with stable outlook.

© Worldofchemicals News


Also Read:

Henkel to acquire Sun Products in $3.6 billion deal

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