Celanese Prices $7.5B of Permanent Financing for DuPont M&M Acquisition

Source: www.gulfoilandgas.com 7/7/2022, Location: North America

Celanese Corporation, a global chemical and specialty materials company, priced $7.5 billion in permanent financing for the acquisition of a majority of DuPont’s Mobility & Materials business (the “acquisition”).

The Company announced that its subsidiary, Celanese US Holdings LLC (the “Company”), has priced a registered offering (the “Offering”) of $7.5 billion aggregate principal amount of notes of various maturities with interest rates ranging from 5.91% to 6.38% (the “Notes”). The Notes will be guaranteed on a senior unsecured basis by the Company and certain Celanese domestic subsidiaries, similar to prior issuances. The Offering is expected to close on or about July 14, 2022.

The Company simultaneously entered into a cross-currency swap to effectively convert $2.5 billion of the US dollar denominated Notes into a euro-denominated borrowing at prevailing euro interest rates.

The effective net borrowing rate to the Company will be approximately 5.6%, inclusive of the yield on the Notes and the beneficial impact of the currency swap.

“We are pleased to have secured a significant portion of the permanent financing for the M&M acquisition in this first window of opportunity,” said Scott Richardson, executive vice president and chief financial officer. “We were purposeful in securing an amount of debt that maintained competitive rates considering current debt market conditions. The cross-currency swap we simultaneously entered will help to align our currency mix with our anticipated global earnings while reducing our total borrowing cost. Looking to the future, we expect to have multiple windows and potential funding sources to secure the remaining financing, with flexibility depending on market conditions and the eventual timing to close the acquisition.”


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