The chemicals and ingredients distribution specialist plans to use the proceeds to finance business development
Brenntag, the chemicals and ingredients distribution specialist, has issued a promissory note for approximately €640m ($642m).
This is the first such transaction for Brenntag. The proceeds will be used to finance Brenntag's business development.
The promissory notes have seven tranches with Brenntag's parent company, Brenntag SE, acting as Borrower. The tranches have fixed or floating interest rates and tenors of three, five or seven years. Next to EUR tranches totalling €390m there are USD tranches in the amount of $250m.
Due to high investor demand, the initial amount of 300 million EUR was upscaled significantly.
Kristin Neumann, Chief Financial Officer Brenntag SE, said: “This capital market transaction, the largest for Brenntag so far, highlights once again Brenntag’s appeal among debt investors. With the successful first promissory note (Schuldschein) transaction in such a volatile market environment we have further diversified our investor base and generated funding at attractive conditions. The high flexibility of the promissory notes (Schuldschein) enabled us to tailor the tranches precisely to our current financing needs.”
Brenntag was supported in the transaction by a banking syndicate comprised of Commerzbank, HSBC and Helaba.