LANXESS signs new EUR 1.25 billion syndicated credit facility

Leverkusen - Specialty chemicals group LANXESS has signed a new EUR 1.25 billion syndicated credit facility with an international banking consortium. The facility has a five year maturity and contains two separate one-year extension options. This facility replaces the company’s existing EUR 1.4 billion credit line due to mature in November 2014.


The 15 banks that were part of the consortium committed EUR 1.8 billion in total to the transaction, which was self-arranged by LANXESS. The strong demand allowed the company to close the transaction at the final amount of EUR 1.25 billion.


The credit facility will serve as long-term liquidity and as a financial back-up for the company’s growth strategy. LANXESS currently maintains a liquidity reserve of more than EUR 2 billion in liquid assets and undrawn credit facilities.


“The new facility reflects our strong ties with our banking partners, who support the growth strategy of LANXESS with their long-term credit commitments,” said Chief Financial Officer Bernhard Duettmann. LANXESS is targeting EUR 1.4 billion and EUR 1.8 billion EBITDA pre exceptionals in 2014 and 2018 respectively.


“We have proactively used this year’s attractive market conditions for solid investment grade companies in order to put our financing structure on a very long-term footing,” added Duettmann.


As part of its existing Debt Issuance Program, LANXESS has this year placed a ten-year EUR 500 million bond and an offshore RMB bond in the Asian capital markets amounting to RMB 500 million (roughly EUR 60 million). In addition, the company secured for the first time two private placements at EUR 100 million each with maturities of 10 and 15 years.


LANXESS is rated BBB (stable outlook) by Standard & Poor’s and Baa2 (stable outlook) by Moody’s.


LANXESS is a leading specialty chemicals company with sales of EUR 8.8 billion in 2011 and currently around 17,100 employees in 31 countries. The company is at present represented at 49 production sites worldwide. The core business of LANXESS is the development, manufacturing and marketing of plastics, rubber, intermediates and specialty chemicals. LANXESS is a member of the leading sustainable indices Dow Jones Sustainability Index (DJSI) World and FTSE4Good.

Forward-Looking Statements
This news release may contain forward-looking statements based on current assumptions and forecasts made by LANXESS AG management. Various known and unknown risks, uncertainties and other factors could lead to material differences between the actual future results, financial situation, development or performance of the company and the estimates given here. The company assumes no liability whatsoever to update these forward-looking statements or to confirm them to future events or developments.


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