DALLAS, July 12, 2022–(BUSINESS WIRE)–Celanese Corporation (NYSE:CE), a global specialty chemicals and materials company, today offered additional permanent financing of €1.5 billion for the acquisition of a majority of DuPont’s Mobility and Materials business (the “Acquisition”).
Celanese announced that its subsidiary, Celanese US Holdings LLC (the “Company”), has priced a registered offer (the “Offer”) for an aggregate principal amount of €1.5 billion of euro notes with maturities of 4 and 6.5 years at interest rates of 4.78% and 5.34%, respectively (the “Notes”). The Notes will be guaranteed on a senior unsecured basis by the Company and certain national subsidiaries of Celanese, as with previous issuances. The offering is expected to close on or around July 19, 2022.
To date, Celanese has secured $10.5 billion in permanent financing for the acquisition at an effective net borrowing rate of approximately 5.4%, including the registered offer in principal amount of 7 $.5 billion of US dollar notes at July 7, 2022 prices and the euro currency swap. concurrently entered into, these Notes and, as announced in March 2022, the $1.5 billion deferred draw term loan commitments under the Term Credit Agreement dated March 18, 2022. The borrowing rate net includes an assumed interest rate over the term of the deferred loan drawdown based on the forward curve of current interest rates.
“We are delighted to have secured permanent financing for the acquisition of M&M,” said Scott Richardson, executive vice president and chief financial officer. “We were committed to optimizing our debt maturity profile to provide us with great flexibility to deleverage quickly over the next several years and to refinance at potentially lower borrowing rates in the future. We expect further opportunities in the coming quarters to allow us to further reduce our borrowing rate by entering into additional cross-currency swaps to effectively convert more of our US dollar debt into lower interest rate currencies. “
BofA Securities, Citigroup, Deutsche Bank Securities, HSBC and JP Morgan are acting as Joint Bookrunners for the offering of Notes. When available, a copy of the preliminary prospectus supplement and accompanying base prospectus relating to the offering may be obtained on request from Citigroup Global Markets Limited, c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, New York 11717, by calling 1-800-831-9146 or emailing [email protected]; Deutsche Bank AG, London Branch, Winchester House, 1 Great Winchester Street, London, EC2N 2DB, United Kingdom, Attn: DCM Debt Syndicate, Fax: +44 207 545 4361; HSBC Bank plc, 8 Canada Square, London E14 5HQ, United Kingdom, Attention: Head of DCM Legal, Fax: +44 20 7992 4973; JP Morgan Securities plc, 25 Bank Street, Canary Wharf, London, E14 5JP, United Kingdom, Attention: Head of Debt Syndicate and Head of EMEA Debt Capital Markets Group, Fax: +44 20 3493 0682 or Merrill Lynch International, 2 King Edward Street, London, EC1A 1HQ, United Kingdom, Attn: Syndicate Desk, Telephone: +44 (0)20 7995 3966.
An electronic copy of the preliminary prospectus supplement and accompanying base prospectus may also be obtained free of charge from the Securities and Exchange Commission‘s website at www.sec.gov.
This press release does not constitute an offer to sell or a solicitation of an offer to buy the securities described herein, and there will be no sale of such securities in any jurisdiction in which such offer, solicitation or sale would be illegal before registration. or qualification under the securities laws of such jurisdiction. The offering may only be made by means of a prospectus and prospectus supplement satisfying the requirements of Section 10 of the Securities Act of 1933, as amended. The offering will be made pursuant to an effective shelf registration statement, which has been previously filed by Celanese with the Securities and Exchange Commission, together with a prospectus supplement and accompanying prospectus, which will be filed by Celanese with of the Securities and Exchange Commission.
Celanese Corporation is a global chemical leader in the production of differentiated chemical solutions and specialty materials used in most major industries and consumer applications. Our businesses use the full breadth of Celanese’s global expertise in chemistry, technology and commerce to create value for our customers, employees, shareholders and the company. As we partner with our customers to solve their most critical business needs, we strive to have a positive impact on our communities and the world through the Celanese Foundation. Dallas-based Celanese employs approximately 8,500 employees worldwide and had net sales of $8.5 billion in 2021.
Forward-looking statements: This press release may contain “forward-looking statements”, which include information regarding plans, objectives, goals, strategies, future revenues, cash flows, synergies, performance, capital expenditures and other information that is not historical information. When used in this press release, the words “outlook”, “forecast”, “estimate”, “forecast”, “anticipate”, “project”, “plan”, “intends”, “believes”, “will” and variations of these words or similar expressions are intended to identify forward-looking statements. All forward-looking statements are based on current expectations and beliefs and various assumptions. There can be no assurance that the Company will achieve these expectations or that these beliefs will prove to be correct. There are a number of risks and uncertainties that could cause that the results differ materially from the results expressed or implied by the forward-looking statements contained in this version. These include changes in exchange and interest rates, the effectiveness of our hedging activities; the Company’s ability to obtain regulatory approval and satisfy closing conditions regarding the acquisition, the timing of its closing and the Company’s ability to realize the benefits of the acquisition and its hedging activities. Many other factors, many of which are beyond the control of the company, could cause actual results to differ materially from those expressed as forward-looking statements. Other risk factors include those discussed in the Company’s filings with the Securities and exchange commission. Any forward-looking statement speaks only as of the date it is made, and the Company undertakes no obligation to update any forward-looking statements to reflect events or circumstances subsequent to the date on which it is made or to reflect the occurrence of foreseen or unforeseen events. events or circumstances.
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