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Leverkusen, October 2, 2014 – The Bayer Group is issuing a jumbo bond in 144A/Reg S format with a volume of USD 7 billion through its subsidiary Bayer U.S. Finance LLC, Pittsburgh, United States. The bond comprises six tranches with short-, mid- and long-term maturities. The U.S.dollar bond makes up part of the financing of the acquisition of the OTC business of Merck & Co., Inc., United States.
The short-term paper is a two-year variable tranche with a volume of USD 0.5 billion and a coupon of 0.25 percent above the three-month USD Libor rate.
The mid-term bond with a volume of USD 1.25 billion and a maturity of three years has a USD 850 million fixed rate portion (1.5 percent coupon) and a USD 400 million part with variable rate (coupon 0.28 percent above the three-month USD Libor rate).
A five-year bond with a volume of USD 2 billion was priced with a coupon of 2.375 percent.
The long-term tranches with a volume of USD 1.5 billion maturing in 2021 and USD 1.75 billion maturing in 2024 will pay a coupon of 3.0 percent (seven years) and 3.375 percent (ten years).
The net cash provided by the U.S. bond will replace part of the bridge financing already secured by Bayer in May 2014 in connection with the takeover agreement with Merck & Co., Inc., United States. A further component of the financing is a USD 2 billion loan with a term of four years, which was provided by the same consortium of 26 banks as the bridge financing. In June, the company had already issued a two-tranche hybrid bond with a total volume of EUR 3.25 billion.
Bayer: Science For A Better Life
Bayer is a global enterprise with core competencies in the fields of health care, agriculture and high-tech polymer materials. As an innovation company, it sets trends in research-intensive areas. Bayer’s products and services are designed to benefit people and improve their quality of life. At the same time, the Group aims to create value through innovation, growth and high earning power. Bayer is committed to the principles of sustainable development and to its social and ethical responsibilities as a corporate citizen. In fiscal 2013, the Group employed 113,200 people and had sales of EUR 40.2 billion. Capital expenditures amounted to EUR 2.2 billion, R&D expenses to EUR 3.2 billion. For more information, go to www.bayer.com.
This news release may contain forward-looking statements based on current assumptions and forecasts made by Bayer Group or subgroup management. Various known and unknown risks, uncertainties and other factors could lead to material differences between the actual future results, financial situation, development or performance of the company and the estimates given here. These factors include those discussed in Bayer's public reports, which are available on the Bayer website at www.bayer.com. The company assumes no liability whatsoever to update these forward-looking statements or to conform them to future events or developments.
This news release does not constitute an offer to sell securities, or a solicitation of an offer to buy securities, in the United States of America. Securities may not be offered or sold in the United States of America absent registration or an exemption from registration under the U.S. Securities Act of 1933, as amended (the “Securities Act”). The securities of the Bayer Group described herein have not been and will not be registered under the Securities Act, or the laws of any State, and may not be offered or sold within the United States, except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and applicable State laws. Bayer does not intend to register any portion of the offering in the United States or conduct a public offering of securities in the United States.