Altana strengthens business with €150m refinancing

Specialty chemicals group Altana has successfully issued its first-ever German Schuldschein, securing additional financing to the value of €150 million to strengthen the long-term financial capacities of the company.
 
The Schuldschein was placed with about 100 banks, savings banks and institutional investors, and was four times oversubscribed. In view of the strong demand the loan amount was raised from €100 million to a total of €150 million within the framework of the securing process, Altana said. The Schuldschein is divided into two tranches, with a maturity of four and six years.
 
Both tranches are partially furnished with a variable interest and partially with a fixed interest rate. Due to the great level of interest in this transaction, the interest rate was set at the lower end of the marketing range. The fixed-interest rate is set at an average of 2.78 percent per year. The issue was arranged by the two accompanying banks HSBC Trinkaus and Landesbank Baden-Württemberg.
 
Altana said the Schuldschein strengthens the company's long-term financing capacities and will be used to partially refinance a syndicated credit line of €400 million which, for the most part, will expire in the spring of 2013. Furthermore, the transaction enables the company to diversify its financing instruments and helps safeguard Altana’s flexibility for further growth.
 
Altana develops and produces high-quality products in the specialty chemicals business. Around 85 percent of its sales are generated by international activities. Its product range includes additives, special coatings and adhesives, effect pigments, sealants and compounds, impregnating resins, varnishes, and testing and measuring instruments.
 
At present, the Altana Group has 42 production facilities and 48 service and research laboratories worldwide. In 2010, Altana achieved sales of more than €1.5 billion.