Lonza Specialty sets price talk in CHF 831 million two-part sustainability-linked notes offering

By Paul A. Harris

Portland, Ore., April 28 – Lonza Specialty Ingredients set price talk in its CHF 831 million equivalent (approximately $908 million equivalent) of sustainability-linked notes, market sources said.

The deal features $350 million of seven-year senior secured notes (expected ratings B2/B) talked in the 5¼% area, versus initial guidance in the low 5% area, and €460 million eight-year senior unsecured notes (expected ratings Caa2/CCC+) talked in the 5½% area, versus initial guidance in the mid 5% area.

The notes are expected to price before the end of the April 26 week.

Deutsche Bank is the lead.

The notes in both tranches come with three years of call protection.

Proceeds plus CHF 1.8 billion equivalent of bank loans will be used to help fund the CHF 4.2 billion buyout of Lonza Specialty, a Basel, Switzerland-based specialty chemicals company, by Bain Capital Private Equity and Cinven.

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