⬤ Pricing of USD 650 million senior secured green notes (the “Green Notes”) at a coupon of 7.950 percent per annum from the joint venture LD Celulose
⬤ The offering was oversubscribed by 4.6 times as a result of high demand from institutional investors
Lenzing: LD Celulose International GmbH (the “Issuer”), a fully owned subsidiary of its Brazilian joint venture, LD Celulose S.A. (“LDC”), has successfully priced the offering of Green Notes in an aggregate principal amount of USD 650 million. The Lenzing Group is a leading supplier of regenerated cellulose fibers for the textile and nonwovens industries.
Demand for the 7.950 percent annual coupon Green Notes, which maturity on January 25, 2032, was strong among institutional investors.
A USD 350 million syndicated term loan is also a part of LDC’s new financing structure, which has a USD 1 billion overall value. The net proceeds from this offering, along with cash on hand and an amount equal to the proceeds from the term loan disbursement, will be used by LDC to permanently repay all outstanding financing agreements in full. Additionally, an amount equal to the proceeds from the Notes’ offering will be set aside to finance and refinance qualified investments in compliance with the Green Financing Framework.
The CEO of the Lenzing Group, Rohit Aggarwal, said, “The Lenzing Group has a clear plan to further green its production.” The company has been a pioneer in the sustainable textile and nonwovens business as well as the production of dissolving wood pulp for decades. “Our sustainability efforts also contribute to the interest that investors have shown in LDC’s Green Notes.”
“With the successful transaction, LDC will convert the existing project financing, which enabled the erection of one of the largest dissolving wood pulp plants in the world, into a standalone corporate finance structure,” said Nico Reiner, CFO of the Lenzing Group. This is yet another significant achievement for the joint company, which has already exceeded predictions for its nominal design capacity of 500,000 tons annually.
The Issuer will issue the Green Notes, and LD Florestal S.A. and LDC will guarantee them. On the Singapore Stock Exchange, the Green Notes are scheduled to be listed.
