This section offers some important information for debt investors.
The ability to flexibly use different sources of funds plays a key role in the financing of the Lonza Group. Lonza has therefore established a number of debt instruments.
Significant Debt Instruments as of 31 December 2015:
Lonza’s Investment Grade Rating Maintained Post FY 2014 Results
Following Lonza’s full-year 2014 results presentation on 21 January 2015 a number of the leading Swiss banks have re-evaluated Lonza’s investment rating. Following their analysis, the banks came to the conclusion that Lonza’s investment grade rating should be maintained. At the end of 2014 the Company’s net debt amounted to CHF 2011 million, giving a debt-equity ratio of 0.94 and a net debt/EBITDA ratio of 2.7x, as a result of the acquisition of Arch Chemicals in October 2011 which was entirely debt financed. During its 2014 Results Presentation, Lonza communicated that due to the free cash flow generation of the business it was targeting a net debt/EBITDA ratio of around 2x by the end of 2015. This focus on reducing net debt is expected to continue for the next several years.
Prospectus for Straight Bond 2010-2016 | PDF
Prospectus for Straight Bond 2011-2015 | PDF
Prospectus for Straight Bond 2011-2018 | PDF
Prospectus for Straight Bond 2012-2018 | PDF
Prospectus for Straight Bond 2012-2022 | PDF
Prospectus for Straight Bond 2013-2019 | PDF
Prospectus for Straight Bond 2015-2020 | PDF
Prospectus for Straight Bond 2015-2023 | PDF
The Syndicated loan facility
of CHF 700 million, which was not used as of 31 December 2015 (2014: CHF 125
million was used as of 31 December), has floating interest rates (CHF LIBOR +
margin, depending on margin grid). Lonza has not hedged the related interest
rate risk. The entire loan facility is granted until 2016, CHF 637 million
until 2017 and CHF 614 million until 9 September 2018.
After continuous debt
reduction, all financial covenants have been released as per June 30, 2015.
private placement (Schuldscheindarlehen) of EUR 34 million (2014: EUR 67.5 million)
and USD 12 million (2014: USD
133 million) tranches carry fixed and floating interest rates (LIBOR / EURIBOR
+ margin) and are repayable in 2017 and 2019. The carrying amount is CHF 49
million as of 31 December 2015 (2014: CHF 213 million, whereof CHF 160 million
disclosed as current debt). The repayments in 2015 amount to CHF 155 million.
Breakdown of Total Debt by Currencies: