Celanese Corporationa 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 Company announced that its subsidiary, Celanese US Holdings LLC has priced a registered 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 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. 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.”
Scott Richardson, executive vice president and chief financial officer
This press release does not constitute an offer to sell or a solicitation of an offer to buy the securities described herein, nor shall there be any sale of these securities in any jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. The offering may be made only by means of a prospectus and prospectus supplement meeting the requirements of Section 10 of the Securities Act of 1933, as amended. The offering will be made pursuant to an effective shelf registration statement, which was previously filed by Celanese with the Securities and Exchange Commission, and a prospectus supplement and accompanying prospectus, which will be filed by Celanese with the Securities and Exchange Commission.
About Celanese
Celanese Corporation is a global chemical leader in the production of differentiated chemistry solutions and specialty materials used in most major industries and consumer applications. Our businesses use the full breadth of Celanese's global chemistry, technology and commercial expertise to create value for our customers, employees, shareholders and the corporation. As we partner with our customers to solve their most critical business needs, we strive to make a positive impact on our communities and the world through The Celanese Foundation. Based in Dallas, Celanese employs approximately 8,500 employees worldwide and had 2021 net sales of $8.5 billion.