Sep 7, 2016 Düsseldorf / Germany
Henkel successfully placed bonds with a value of 2.2 billion euros
Henkel has successfully placed bonds with a value of 2.2 billion euros. 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 euros (3.6 billion US dollars) including debt, was closed on September 1, 2016. It will be financed by a combination of a 3 year bank loan of about 1.0 billion euros 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% p.a. and a negative yield of -0.05% p.a. as well as a 700 million Euro bond with a maturity of 5 years and a coupon and a yield of each 0% p.a. Furthermore a 750 million US Dollar bond on the Eurodollar market with a maturity of 3 years and a coupon of 1.5% p.a. and a 300 million British Pound bond with a maturity of 6 years and a coupon of 0.875% p.a.
“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.”
The placement of the bonds was significantly oversubscribed and attracted wide interest by international investors.
Joint active bookrunners 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.
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