Linde places €1bn bond to pay down Lincare acquisition debt

05 September 2012 17:00  [Source: ICIS news]

LONDON (ICIS)--Linde has completed a €1bn ($1.2bn) bond placement to pay down a portion of the debt facility taken on to acquire US-based medical gases and respiratory healthcare firm Lincare, the German industrial gas supplier said on Wednesday.

Maturing in 2020, the bond had a coupon of 1.75% and was priced at 35 basis points over the Midswaps benchmark, with a mix of institutional and retail investors signing up to the issue.

Linde completed the acquisition of Lincare on 14 August this year, paying $41.50 per share for the Florida company. The deal was financed with $3.6bn in debt and $900m in equity, a Linde spokesperson told ICIS.

Linde's chief financial officer Georg Denoke said in a statement: "It is crucial to be able to act swiftly in a volatile market climate. We were keen to quickly replace a substantial part of the acquisition loan with long-term capital market liabilities.”

The three-times oversubscribed bond was placed under the Euro Medium Term Note (EMTN) programme, which increases the ease with which issuers can enter into foreign currency markets for capital. Linde declined to disclose bookrunners on the transaction.

($1 = €0.80)

By: Tom Brown
+44 208 652 3214

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