Consumables

ALTANA successfully places €200 million German Schuldschein

Monday 02. December 2013 - The specialty chemicals Group ALTANA has suc- cessfully issued a German Schuldschein with a volume of €200 million. The trans- action, which was placed with about 130 banks, savings banks, and other institu- tional investors, was more than four times oversubscribed. In view of the strong demand in the course of the issuing process, the loan amount was increased from €160 million to a total of €200 million.

The purpose of this transaction is to partially refinance an acquisition loan that ALTANA had raised in the context of the acquisition of Rockwood’s rheology busi- ness, which was completed on October 1, 2013. “The issuance of the Schuldschein is a further consistent step in our financing strategy that aims at a sound basis for further growth and flexible repayment options along with favorable financing terms,” stated Martin Babilas, Chief Financial Officer of ALTANA AG.
Due to the high interest in this transaction, the interest rate was set at the lower end of the marketing range. The average interest rate is 2.1 percent per year. The Schuldschein is divided into four tranches with maturities of 3.5 to 7 years. Of the two tranches with a term of 3.5 years, one tranche is furnished with a variable rate of interest, the other bears a fixed rate of interest. The tranches with a term of 5.5 and 7 years each have a fixed interest rate. Landesbank Baden-Württemberg and Helaba Landesbank Hessen-Thüringen arranged the Schuldschein placement.
ALTANA had acquired the rheology business of Rockwood Holdings, Inc. (NYSE: ROC) for USD 635 million. A consortium of seven banks had provided acquisition financing in the amount of €300 million to ALTANA. The part of the loan that is not refinanced via the Schuldschein is planned to be settled within the next two to three years directly from ALTANA’s cash flow.