Firmenich International SA has announced the successful placement of its inaugural €1.5 billion Eurobond Benchmark Offering comprising two tranches with 6.5 and 10 year maturities and coupon rates of 1.375% and 1.75%, as well as the placement of CHF 425mn Swiss Franc bonds with a 3.6 year maturity and a coupon rate of 1%.
The net proceeds of the bonds will be used to finance the acquisition of DRT announced on March 6, 2020, and for general corporate purposes.
The Eurobonds were significantly oversubscribed and both offerings attracted strong interest from a broad institutional investor base, demonstrating recognition of the company’s resilient business model, successful operating track record and strong cash generation profile.The benchmark Eurobonds and Swiss bonds are rated BBB by S&P Global Ratings Europe Limited.
Citi and UBS acted as global coordinators and joint bookrunners with respect to the Eurobond offering. Credit Suisse and ZKB acted as joint bookrunners with respect to the Swiss bond offering. The Eurobond offering was expected to be settled on or around April 30, 2020, whilst the Swiss Franc bond offering is expected to be settled on or around May 19, 2020, subject to customary conditions precedent.
Firmenich was advised by Baker & McKenzie and by Bredin Prat and Homburger in respect of French and Swiss law, respectively.
“Our inaugural bond placement represents an important moment in Firmenich’s 125-year history,” Patrick Firmenich, chairman of the board, Firmenich, said. “We are extremely happy with the support received from a wide range of institutional investors.”
“We are excited for the future,” Firmenich CEO Gilbert Ghostine said. “This funding will enable us to continue investing in strategic growth and business development opportunities. I would like to thank all of our colleagues, who have been instrumental in building our business and I welcome our new investors to the Firmenich community.”