Originally Published by Bayer.
Via its subsidiary, Bayer U.S. Finance II LLC, Pittsburgh, United States, the Bayer Group is issuing bonds with a volume of 15 billion U.S. dollars guaranteed by Bayer AG. The placement comprises eight tranches with differing maturities and exclusively targets international institutional investors. It was approximately three times oversubscribed and will secure the long-term financing of the Monsanto acquisition.
The bond with a maturity of three years and an aggregate volume of 2.5 billion U.S. dollars comprises a fixed rate tranche (1.25 billion U.S. dollars with a coupon of 3.50 percent p. a.) and a floating rate tranche with a volume of 1.25 billion U.S. dollars and an interest rate of 0.63 percentage points above the three-month Libor for the U.S. dollar.
The bond with a maturity of 5.5 years comprises a fixed rate tranche with a volume of 2.25 billion U.S. dollars and a coupon of 3.875 percent p. a. and a floating rate tranche with a volume of 1.25 billion U.S. dollars and an interest rate of 1.01 percentage points above the three-month Libor for the U.S. dollar.
The longer-term bonds have maturities of 7.5, 10.5, 20 and 30 years and fixed interest rates of 4.25 percent p. a. (volume of 2.5 billion U.S. dollars, maturing in 2025), 4.375 percent p. a. (volume of 3.5 billion U.S. dollars, maturing in 2028), 4.625 percent p. a. (volume of 1.0 billion U.S. dollars, maturing in 2038) and 4.875 percent p. a. (volume of 2.0 billion U.S. dollars, maturing in 2048).
Bayer intends to use the net proceeds from the bond issue to pay down portions of the syndicated credit facility used as bridge financing for the acquisition of Monsanto.
