S&P rates Sika convertibles BBB

S&P said it assigned a BBB rating to Sika AG's proposed mandatory convertible bond due January 2022.

The agency said it assesses the bond as having high equity content.

The proceeds will support the CHF 2.5 billion financing of Sika's acquisition of construction chemicals company Parex, which was announced in Jan. 8, S&P explained.

The agency said it assesses the convertibles as having high equity content because they convert mandatorily into ordinary shares of the issuer within three years of the issuance, are deeply subordinated and have a deferrable coupon.

The company has a conservative financial policy commitment to maintain an A- issuer credit rating, S&P said.

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