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Henkel places USD600 million Eurodollar bond

Henkel has placed a USD600 million bond in the Eurodollar market.

The bond has a term of three years and matures on 12 June 2020.
The bond pays a coupon of 2.0 per cent. The settlement is expected to take place on 12 June 2017.
The placement of the bond was significantly oversubscribed and attracted wide interest by international investors. The proceeds from the issue will be used to finance the acquisitions Henkel recently announced.
This year, Henkel signed agreements to acquire the global Darex Packaging Technologies business from GCP Applied Technologies, Mexican hair care company Nattura Laboratorios as well as the Sonderhoff-Holding GmbH.
In addition to the bond, cash and the existing commercial paper programmes will be used for financing the transactions.
“The successful placement of the bond reflects our excellent access to the capital markets,” says Henkel CFO Carsten Knobel. “Following the successful bonds issue in the previous year, we once again managed to secure attractive financing conditions. As the payments have to be settled in US dollars, using the Eurodollar market offered significant financing cost benefits compared to an issue in the Euro market.”
Joint active bookrunners were Bank of America Merrill Lynch, Deutsche Bank, Citibank and HSBC. Henkel’s current long-term rating is A by Standard & Poor’s and A2 by Moody’s, both with stable outlook.

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