Arkema launches capped tender offer for hybrids issued in 2014

By Sarah Lizee

Olympia, Wash., June 5 – Arkema SA launched a tender offer to partially repurchase its €700 million undated deeply subordinated fixed- to reset-rate notes issued in 2014 and with a first call date on Oct. 29, 2020, according to a press release.

The tender offer is subject to a maximum acceptance amount, which is expected to be equal to the principal amount of new euro-denominated 5.25-year subordinated fixed-to reset rate notes (expected ratings: Ba1/BBB-) that the company plans to price.

Arkema said the purpose of the tender offer and the planned new issue is, amongst other things, to proactively manage the refinancing of the company’s outstanding hybrid notes, taking advantage of favorable market conditions.

The total size of the company’s stock of hybrid notes will remain at least equal as a result.

It is expected that the portion of the 2014 notes not refinanced by the new notes will continue to be assigned a 50% equity credit by the rating agencies.

The results of the tender offer will be announced on June 13.

The chemical and materials maker is based in Colombes, France.

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