07 January 2013 07:45 [Source: ICIS news]
SINGAPORE (ICIS)--Germany’s specialty chemicals maker LANXESS has signed a new €1.25bn ($1.64bn) syndicated credit agreement with an international banking consortium, a news release from LANXESS said on Monday.
The agreement has a five-year maturity and contains two separate one-year extension options. This agreement replaces the company’s existing €1.4bn credit line due to mature in November 2014.
The 15 banks that were part of the consortium committed €1.8bn in total to the transaction, which was self-arranged by LANXESS. The strong demand allowed the company to close the transaction at the final amount of €1.25bn, according to the release.
The credit facility will serve as long-term liquidity and as a financial back-up for the company’s growth strategy. LANXESS currently maintains a liquidity reserve of more than €2bn in liquid assets and undrawn credit facilities.
LANXESS is targeting €1.4bn and €1.8bn earnings before interest, tax depreciation and amortisation (EBITDA) pre exceptionals in 2014 and 2018 respectively.
LANXESS is rated BBB (stable outlook) by Standard & Poor’s and Baa2 (stable outlook) by Moody’s.
($1 = €0.76)
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