Bayer concludes refinancing of Monsanto acquisition by placing bonds
OREANDA-NEWS. June 20, 2018. Via its subsidiary, Bayer Capital Corporation B.V., Mijdrecht, Netherlands, the Bayer Group is issuing bonds with a volume of 5 billion euros guaranteed by Bayer AG. The issue comprises four tranches with differing maturities and exclusively targets institutional investors. It was more than four times oversubscribed. Bayer intends to have the bonds listed on the Luxembourg Stock Exchange.
“With this transaction, we have successfully concluded the refinancing of the Monsanto acquisition. It confirms our outstanding reputation and the high level of confidence that Bayer enjoys on the capital markets,” said Bayer CFO Wolfgang Nickl. “The investment-grade ratings from three rating agencies are evidence of Bayer’s continued good credit standing following the acquisition.”
Bayer recently already placed bonds with a volume of 15 billion U.S. dollars with institutional investors.
The company intends to use the net proceeds from the bond issues to pay down portions of the syndicated credit facility used as bridge financing for the acquisition of Monsanto.
Bayer is a global enterprise with core competencies in the life science fields of health care and agriculture. Its products and services are designed to benefit people and improve their quality of life. At the same time, the Group aims to create value through innovation, growth and high earning power. Bayer is committed to the principles of sustainable development and to its social and ethical responsibilities as a corporate citizen. In fiscal 2017, the Group employed around 99,800 people and had sales of 35.0 billion euros. Capital expenditures amounted to 2.4 billion euros, R&D expenses to 4.5 billion euros. For more information, go to www.bayer.com.
This release may contain forward-looking statements based on current assumptions and forecasts made by Bayer 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. These factors include those discussed in Bayer’s public reports which are available on the Bayer website at www.bayer.com. The company assumes no liability whatsoever to update these forward-looking statements or to conform them to future events or developments.