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 2019
|CHF instruments||Nominal Value|
|Straight bond (2012-2022)||105|
|Straight bond (2015-2020)||150|
|Straight bond (2016-2021)||250|
|Straight bond (2015-2023)||175|
|Straight bond (2017-2021)||125|
|Straight bond (2017-2024)||110|
|Syndicated Loan (2019-2024)||80
|EUR instruments||Nominal Value|
|Term Loan (2019-2020)||500
|USD instruments||Nominal Value|
|Term Loan (2019-2024)||500
|Term Loan (2019-2025)||200
|Syndicated Loan (2019-2024)||65|
Initiation of S&P credit rating
Lonza announced the initiation of a public credit rating with Standard & Poor’s (S&P), which resulted in a BBB+ rating with a stable outlook. Lonza is committed to maintaining an investment-grade rating going forward.
In April 2020 Lonza issued its inaugural Eurobond with a coupon of 1.625% in the European capital market. The net proceeds were used to refinance existing debt and general corporate purposes. The new bond with a volume of EUR 500 million has a maturity of 7 years. The notes have been offered under a standalone Prospectus and will be listed on the Luxembourg Stock Exchange in denominations of EUR 100,000 by EUR 1,000.
CHF - Bond
In April 2020, Lonza issued an additional CHF 300 million straight bond. The bond has a maturity of 3 years and an annual coupon of 1.000%. The net proceeds were used for general corporate purposes.Lonza Prospectus
In 2019, Lonza issued term loan tranches of EUR 500 million, USD 500 million and USD 200 million carrying floating interest rates and repayable in 2020, 2024 and 2025 respectively. The newly issued term loan effectively replaces the EUR 450 million and USD 489 million term loan tranches issued in 2017 with maturity dates in 2020 and 2022 and the bank loan of USD 200 million. The net proceeds received in 2019 totaled CHF 265 million.
In 2020, the net proceeds from the Eurobond were primarily used for the repayment of the EUR 500 million term loan tranche.
German private placement (Schuldscheindarlehen)
The dual-currency German private placement (Schuldscheindarlehen) of EUR 700 million and USD 200 million tranches carry fixed and floating interest rates (LIBOR/EURIBOR + margin) respectively, and are repayable in 2021 (EUR 325 million), 2022 (USD 150 million), 2023 (EUR 375 million) and 2024 (USD 50 million). The single-tranche German private placement (Schuldscheindarlehen) of USD 100 million carry floating interest rates (LIBOR + margin) and is repayable in 2024.
In 2019 Lonza signed a syndicated loan with a consortium of banks on the following terms: Credit facility of CHF 1,000 million, of which CHF 80 million and USD 65 million was used as of 31 December 2019, due 2024, at floating interest rates. The new syndicated loan effectively replaces the syndicated loan signed in 2017 of which CHF 259 million were used as of 31 December 2018.
Other current and non-current debt compromise industrial revenue bonds of USD 187 million issued by governmental institutions in the United States (repayable in 2020, 2022, 2025, 2030 and 2047).
|Average interest rates %||%||million CHF||Average interest rates %||%||million CHF|