- New multicurrency syndicated loan facilities in an Euro-equivalent exceeding EUR 1.8bn successfully signed
- Extended maturities, a high degree of financial flexibility and significant interest savings achieved
Brenntag (WKN A1DAHH), the global market leader in chemical distribution, successfully signed new multicurrency syndicated loan facilities in an Euro-equivalent exceeding EUR 1.8bn. With the transaction the company takes advantage of its continued successful track record and the attractive market environment. Brenntag achieves extended maturities, a high degree of financial flexibility and significant margin improvements. Bank of America Merrill Lynch, Deutsche Bank, Goldman Sachs International and UniCredit Bank acted as mandated bookrunners.
The syndicated facilities comprise a mix of term loans and revolving facilities in EUR, USD, CAD and CHF tranches, most of them providing for a five year maturity. About EUR 1.5bn of the new facilities will be drawn to replace the majority of Brenntag’s existing financial debt, while about EUR 0.3bn will remain undrawn providing a strong liquidity cushion.
The transaction attracted a very strong level of interest that resulted in a significant over-subscription. Overall 26 institutions committed to the new financing.
The facilities can be drawn once all customary conditions precedent to funding are fulfilled which is expected over the next weeks. Subject to a leverage grid, the new facilities will bear average initial margins of less than 2% above interbank rates. Compared to the existing facilities this provides for ongoing margins savings of about 2% p.a. and significant interest savings, despite an increased share of fixed interest rates.
Simultaneously Brenntag’s existing A/R Securitization program, which funds close to EUR 0.2bn, has been successfully extended from January 2012 to June 2014.
Jürgen Buchsteiner, CFO of Brenntag Group, comments: „Benefiting from Brenntag’s track record of deleveraging, the improved credit ratings and the favorable market environment, we were able to secure a highly attractive financing package that permits significant interest savings and furthermore provides a high level of liquidity and flexibility. Following our successful IPO and the inclusion in the MDAX in 2010, this is one more successful step for Brenntag and its shareholders.
Brenntag’s credit rating has recently been upgraded by Standard & Poor’s to BBB- and by Moody’s to Ba1.
Brenntag is the global market leader in full-line chemical distribution. Linking chemical manufacturers and chemical users, Brenntag provides business-to-business distribution solutions for industrial and specialty chemicals globally. With over 10,000 products and a world-class supplier base, Brenntag offers one-stop-shop solutions to about 160,000 customers. The value-added services include just-in-time delivery, product mixing, formulation, repackaging, inventory management, drum return handling as well as extensive technical support. Headquartered in Mülheim an der Ruhr, Germany, the company operates a global network with more than 400 locations in nearly 70 countries. In 2010 the company realized global sales of EUR 7.6 billion (USD 10.1 billion) with more than 12,000 employees.
This press release may contain forward-looking statements based on current assumptions and forecasts made by Brenntag AG and other information currently available to the company. 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. Brenntag AG does not intend, and does not assume any liability whatsoever, to update these forward-looking statements or to conform them to future events or developments.