The Austrian fiber producer Lenzing AG has further strengthened its financing structure. On Thursday, the company announced the successful placement of a new hybrid bond over 500 million euros.
According to the group, the investor’s demand was unexpectedly positive. “The new hybrid bond was initially offered with a minimum amount of 300 million euros and a cupon range of 9.0 to 9.5 percent,” says a statement. “The offer was very well received by the market, so that Lenzing increased the volume to 500 million euros and the bond at the lower end of the offered cupon range could prize with 9.0 percent.” The company had the bond both existing investor: inside of its hybrid bond and new investor: offered in December 2020.
For Chief Financial Officer (CFO) Nico Reiner, bond is another important component in the group strategy. “The successful placement of the new hybrid bond is the next milestone in the professional and forward -looking management of our capital structure after the financing concluded in May this year through a syndicated loan of 545 million euros,” he said in a statement. “We have mainly secured the financing by 2027 and can still fully concentrate on the implementation of our successful performance program to increase margins and the free cashflow.”