Celanese Corporation, a global chemical and specialty materials company, today priced USD7.5 billion in permanent financing for the acquisition of a majority of DuPont’s Mobility & Materials business (the “acquisition”), said the company.
The Company announced that its subsidiary, Celanese US Holdings LLC (the “Company”), has priced a registered offering (the “Offering”) of USD7.5 billion aggregate principal amount of notes of various maturities with interest rates ranging from 5.91% to 6.38% (the “Notes”). The Notes will be guaranteed on a senior unsecured basis by the Company and certain Celanese domestic subsidiaries, similar to prior issuances. The Offering is expected to close on or about July 14, 2022.
The Company simultaneously entered into a cross-currency swap to effectively convert USD2.5 billion of the US dollar denominated Notes into a euro-denominated borrowing at prevailing euro interest rates. The effective net borrowing rate to the Company will be approximately 5.6%, inclusive of the yield on the Notes and the beneficial impact of the currency swap.
"We are pleased to have secured a significant portion of the permanent financing for the M&M acquisition in this first window of opportunity,” said Scott Richardson, executive vice president and chief financial officer. “We were purposeful in securing an amount of debt that maintained competitive rates considering current debt market conditions. The cross-currency swap we simultaneously entered will help to align our currency mix with our anticipated global earnings while reducing our total borrowing cost. Looking to the future, we expect to have multiple windows and potential funding sources to secure the remaining financing, with flexibility depending on market conditions and the eventual timing to close the acquisition."
As MRC reported earlier, in H2, 2021, Celanese Corporation announced a force majeure (FM) in China for vinyl acetate monomer (VAM) shipments from its plant Nanjing, China. Celanese temporarily shut down its acetic anhydride and VAM production in Nanjing to comply with requirements of government departments in order to achieve dual energy consumption targets in the Jiangsu Province in 2021. Thus, its VAM plan with the capacity of 300,000 mt/year was shut on 17 September, 2021, and its resumed operations on 9 October, 2021.
Celanese Corporation is a global technology leader in the production of differentiated chemistry solutions and specialty materials used in most major industries and consumer applications. Based in Dallas, Celanese employs approximately 8,500 employees worldwide and had 2021 net sales of USD8.5 billion.
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