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 2015: 

million CHF

                                                                                                          

Nominal Value
   
Straight bond (2010-2016)     400
Straight bond (2011-2018)     140
Straight bond (2012-2018)     200
Straight bond (2012-2022)     105
Straight bond (2013-2019) 300
Straight bond (2015-2018) 150
Straight bond (2015-2023)   175
German Private Placement 49
   

million USD

 

 
   
US Private Placement 233
Revenue Bonds 141
   


                                                                                                                    

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 


Syndicated Loan:

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.


Schuldscheindarlehen:

Dual-currency German 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:

million CHF     2015
     2014
  Average      Average    
  interest
    interest    
  rates
    rates    
   %
 %     %  %  
             
CHF  1.92  78  1 508
2.38 73 1 618
EUR  2.13 2 37 2.30 4 81
USD  2.88 20

393

2.92 23 520
Other  0.00 0 0 0.00 0 2
Total    100  1 938    100  2 221