Finishing auxiliaries maker LANXESS decides to refinance credit facility
01 Oct '05
2 min read
Leather chemical maker LANXESS has agreed on a EUR 1.25 billion, five-year credit line with a bank consortium led by Bank of America, Citigroup, Commerzbank and Deutsche Bank.
This financing replaces the EUR 1.5 billion credit facility arranged in December 2004, comprising a five-year tranche of EUR 1.0 billion and a one-year tranche of EUR 500 million.
CFO Matthias Zachert said that he was extremely pleased with the new agreement: The successful refinancing of their credit facility after less than a year evidences the trust they have earned among their bankers in recent months.
Apart from the longer maturity, LANXESS has also obtained significantly better credit terms. He said the credit line is intended mainly as a long-term liquidity back-up and will probably only be drawn on to a limited degree.
The transaction was more than two times oversubscribed, which led to the originally planned volume of EUR 1 billion being raised to EUR 1.25 billion. The credit line has a maturity of five years, with two one-year extension options.
Leverkusen based chemicals group LANXESS is among the few suppliers to the leather industry who has an almost complete chemical product range for the manufacturing of leather. Products include inorganic- and synthetic tanning agents, preservatives, tanning and finishing auxiliaries, fatliquors and dyestuffs.
In the fashion business, trends are moving quickly. With designers needing colorful, smooth, and quality material, leather provides an exciting material capable of meeting the demands of each season. Leather manufacturers can trust the support of LANXESS Leather.
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