Eurofins repays last €58.4 million hybrid notes with January call date

By Wendy Van Sickle

Columbus, Ohio, Oct. 17 – Eurofins Scientific SE said it repaid the remaining €58.4 million of its outstanding hybrid notes with a first call date in January 2020 at par plus accrued interest this week.

The company said this completes the refinancing of its €300 million 7% hybrid capital instruments with €300 million of 2 7/8% perpetual hybrid capital instruments priced in September.

As a result, the blended average coupon on the company’s three hybrid instruments will fall below 3.7% in 2020 while the average interest rate on its senior debt already fell below 2% in 2019, according to the release.

Eurofins said it now has no bond maturities or hybrid capital call dates until January 2022.

“As opposed to carrying a lot of cash received from bonds on its balance sheet like the group did until 2017, Eurofins is now using medium-term (typically five-year term) committed bank lines of credit to fund part of its needs,” the company said in the release.

“This is a much more cost effective approach, especially considering European banks now charge interest to hold large euro balances for their clients.”

Eurofins is a Luxembourg-based provider of food, environment and biopharmaceutical products testing services.

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