MOSCOW (MRC) -- Solvay announced that it has launched a euro-denominated senior bond issue worth EUR2.25 bn and a euro-denominated hybrid bond issue worth EUR1.0 bn, to finance the intended acquisition of Cytec and to allow the refinancing of existing short-term and long-term financial debts, said the company on its site.
In order to complete the long-term financing of the intended Cytec acquisition, Solvay aims to issue USD-denominated bonds, as well as a EUR1.5 bn rights offering. Subject to both the successful closing of the acquisition and Solvay Board approval, it also intends to maintain the existing Cytec bonds and to grant the parent guarantee of Solvay SA to them.
On July 28, 2015, Solvay entered into a definitive agreement with U.S.-based Cytec to acquire 100% of its share capital for USD75.25 per share in cash. The acquisition has been approved by Cytec’s shareholders, but is still subject to customary closing conditions, including regulatory approvals. The transaction is expected to close before the current year-end.
Both the company’s CEO and chemical equity analysts considered the acquisition pricy at USD75.25 per Cytec share. Shareholders of the US company have approved the transaction.
Cytec Industries Incorporated, based in Woodland Park, New Jersey is a speciality chemicals and materials technology company with pro-forma sales in 2004, including the Surface Specialties acquisition, of approximately USD3.0 billion. Cytec is a result of its spin-off from American Cyanamid Company. It makes resins, plastics, and composite materials, especially for the aerospace industry and other users of specialty materials.
Solvay S.A. is a Belgian chemical company founded in 1863, with its head office in Neder-Over-Heembeek, Brussels, Belgium. The company has diversified into two major sectors of activity: chemicals and plastics. Solvay supplies over 1500 products across 35 brands of high-performance polymers - fluoropolymers, fluoroelastomers, fluorinated fluids, semi-aromatic polyamides, sulfone polymers, aromatic ultra polymers, high-barrier polymers and cross-linked high-performance compounds.
MRC