Bayer explores issuing dual-tranche offering of split-rated hybrids

Chicago, Sept. 19 – Bayer AG (Baa2/BBB/BBB+) was scheduled to meet with investors in one-on-one and small group fixed-income investor calls on Tuesday regarding a euro-denominated offering of hybrid bonds (Ba1/BB+/BBB-) that is expected to come in two parts, according to a source.

The company is exploring issuing 60-year notes with 5.25 years of call protection and 60-year notes with 8.25 years of call protection.

BNP Paribas, Credit Agricole CIB, Goldman Sachs Bank Europe SE and MUFG are the joint bookrunners for the Regulation S offering.

Proceeds will be used for general corporate purposes, including to partially refinance the existing €1.5 billion of subordinated resettable fixed-rate notes due 2074 callable on July 1, 2024 and the €1 billion subordinated resettable fixed-rate notes due 2079 that are callable on Feb. 12, 2025.

The notes will be listed in Luxembourg.

The health care and agriculture products company is based in Leverkusen, Germany.

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