Clariane Initiates €230 Million Senior Notes Offering for Refinancing

Clariane announced a proposed offering of €230 million in senior notes to refinance its existing hybrid green perpetual bonds. The intention is to manage its outstanding £200 million non-convertible bonds, originally issued in June 2021, which currently bear a high interest rate of 13.168% per annum. The new senior notes, due by 2031, will carry a more favorable interest rate of 6.875%.

The refinancing move is backed by Clariane’s leverage agreement, adjusted to permit debt instruments replacing hybrid ones, with a "Wholeco" leverage ratio currently at 5.1x, giving flexibility for this operation. If successful, the refinancing aims to streamline Clariane's capital structure, potentially reducing its financial leverage to around 5.5x by late 2026.

This financial maneuver is part of Clariane's broader strategy to optimize its debt framework, ensuring more strategic flexibility with its covenants adjusted accordingly. The success of this offering remains contingent on market conditions.