Solvay units call €500 million of hybrid bonds, $800 million of notes

By Mary-Katherine Stinson

Lexington, Ky., Oct. 5 – Two Solvay SA subsidiaries will exercise call options regarding their respective securities, according to multiple notices.

The company announced that its subsidiary Solvay Finance SA will redeem its €500 million undated deeply subordinated fixed-to-reset rate perpetual non-call 10-year bonds guaranteed on a subordinated basis by Solvay SA (ISIN: XS0992293901) on the first call date of Nov. 12. As Nov. 12 is not a business day, the redemption will occur on Nov. 13.

The perpetual deeply subordinated bond bears an annual interest rate of 5.425%.

The redemption is a part of Solvay’s liability management process ahead of Solvay’s planned separation into two independent, investment-grade rated listed companies, Specialty Holdco Belgium (expected to be renamed Syensqo) and EssentialCo (which will keep the Solvay name). It expected to take place by means of a partial demerger of Solvay under Belgian law in December.

Additionally, Solvay Finance (America), LLC announced it will redeem its outstanding $800 million 4.45% notes due 2025 fully and unconditionally guaranteed by Solvay SA (Cusips: U8344PAB5, 834423AB1).

The Regulation S and Rule 144A notes will be redeemed on Nov. 15 at a price as determined in paragraph 5 of the notes plus accrued interest. Interest will cease to accrue, and the notes will subsequently be canceled.

Citibank, NA, London Branch is the trustee, registrar, paying agent and transfer agent.

Solvay is a Brussels-based chemical manufacturer.

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