Solvay successfully issues its inaugural USD 1.6 billion of USD-denominated senior bonds
Brussels, December 1, 2015, 08:30 --- Solvay announces today that it has successfully priced two series of USD-denominated senior bonds, issued by Solvay Finance (America), LLC, and guaranteed by Solvay SA, with a combined principal amount of USD 1.6 billion, to finance part of the intended acquisition of U.S.-based Cytec. The bonds comprise:
- A first series of bonds with a principal amount of USD 800 m, due December 2020, with a coupon of 3.40%, payable semi-annually.
- A second series of bonds with a principal amount of USD 800 m, due December 2025, with a coupon of 4.45%, payable semi-annually.
These bonds are expected to be settled on December 3, 2015.
On July 28, 2015, Solvay entered into a definitive agreement with U.S.-based Cytec to acquire 100% of its share capital for USD 75.25 per share in cash. The acquisition has been approved by Cytec’s shareholders, but is still subject to customary closing conditions, including regulatory approvals. The transaction is expected to close before the current year-end.
This issue follows the pricing of euro-denominated senior and hybrid bonds in a combined principal amount of € 3.25 billion, which are expected to be settled on December 2, 2015. In order to complete the long-term financing of the intended Cytec acquisition, Solvay expects to undertake a € 1.5 billion rights offering.
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As an international chemical group, SOLVAY assists industries in finding and implementing ever more responsible and value-creating solutions. Solvay generates 90% of its net sales in activities where it is among the world's top three players. It serves many markets, varying from energy and the environment to automotive and aeronautics or electricity and electronics, with one goal: to raise the performance of its clients and improve society's quality of life. The group is headquartered in Brussels, employs about 26,000 people in 52 countries and generated 10.2 billion euros in net sales in 2014. Solvay SA (SOLB.BE) is listed on EURONEXT Brussels and EURONEXT Paris (Bloomberg: SOLB:BB - Reuters: SOLB.BR).