Switzerland’s Lonza Specialty to sell CHF 831 million equivalent sustainability-linked notes

By Paul A. Harris

Portland, Ore., April 26 – Lonza Specialty Ingredients went out to the broad market with CHF 831 million equivalent (approximately $908 million equivalent) of sustainability-linked notes on Monday, sources said.

The deal features $350 million of seven-year senior secured notes (expected ratings B2/B), with initial price talk in the low 5% area, and €460 million eight-year senior unsecured notes (expected ratings Caa2/CCC+), with initial price talk in the mid 5% area.

The notes are expected to price during the April 26 week.

Deutsche Bank is the lead.

The notes in both tranches come with three years of call protection.

Proceeds plus CHF 1.8 billion equivalent of bank loans will be used to help fund the CHF 4.2 billion buyout of Lonza Specialty, a Basel, Switzerland-based specialty chemicals company, by Bain Capital Private Equity and Cinven.

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