Bond Overview:

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 2016: 

million CHF

Nominal Value

Straight bond (2011-2018)     140
Straight bond (2012-2018)     200
Straight bond (2012-2022)     105
Straight bond (2013-2019) 300
Straight bond (2015-2020) 150
Straight bond (2016-2021) 250
Straight bond (2015-2023)   175
   

million USD

 
US Private Placement 158
Revenue Bonds 141

                                                                                                                  

Lonza’s Investment Grade Rating Maintained Post FY 2016 Results

Following Lonza’s full-year 2016 results presentation on 25 January 2017 a number of the leading Swiss  banks have re-evaluated Lonza’s investment rating. Following their analysis and Lonza’s announced intention to acquire Capsugel in December 2016, the banks came to the conclusion that Lonza’s investment grade rating should be maintained. At the end of 2016 the Company’s net debt amounted to CHF 1584 million, giving  a debt-equity ratio of 0.67 and a net debt/EBITDA ratio of 1.73x.

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 2016-2021 | PDF

Prospectus for Straight Bond 2015-2023 | PDF 


Syndicated Loan:

The Syndicated loan facility of CHF 700 million, of which CHF 100 million (2015: not used) was used as of 31 December 2016, 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.

 

Schuldscheindarlehen:

Dual-currency German private placement (Schuldscheindarlehen) of EUR 34 million (2015: EUR 34 million) and USD 12 million (2015: USD 12 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 2016 (2015: CHF 49 million), of which CHF 44 million is disclosed as current debt. There were no repayments in 2016 (2015: CHF 155 million).

 

Breakdown of Total Debt by Currencies:

    2016
    2015 
  Average interest rates     Average interest rates    
  %
 %  million CHF %  % million CHF
CHF  1.41  80  1 494
1.92 78 1 508
EUR  2.12 2 37 2.13 2 37
USD  2.63 18

327

2.88 18 393
Other  0.00 0 2 0.00 0 0
Total    100  1 860    100  1 938

 

Average interest rates
 million CHF