The bond, with a denomination of EUR 1,000 is also available to private investors on the secondary market.
The bond is divided into two fixed-interest tranches with terms of 5.5 years (coupon 1.00%, amount EUR 500 million) and 8.5 years (coupon 1.75%, amount EUR 500 million), as well as a variable-interest tranche (amount EUR 500 million) with a term of 2 years and a spread of 0.60% over the 3-month Euribor. The proceeds will be primarily used to refinance a portion of the remaining loans from the Bayer Group that totaled EUR 2.1 billion as of the end of 2015.
Together with the syndicated credit facility signed in September 2015, bonds form the long-term basis for Covestro's debt financing and also contribute to further diversification of investors. Bookrunners included Bank of America, Merrill Lynch, Citigroup, Deutsche Bank AG, J. P. Morgan, Société Générale and UniCredit.
With 2015 sales of EUR 12.1 billion, Covestro is among the world's largest polymer companies. Business activities are focused on the manufacture of high-tech polymer materials and the development of innovative solutions for products used in many areas of daily life. The main segments served are the automotive, electrical and electronics, construction and the sports and leisure industries. Covestro, formerly Bayer MaterialScience, has 30 production sites around the globe and as of the end of 2015 employed approximately 15,800 people (full-time equivalents).
Find more information at www.covestro.com. Follow us on Twitter: www.twitter.com/CovestroGroup