Solvay to Redeem $648 Million in Bonds Due 2029, End Consent Solicitation Ahead of Split
05 September 2023 - 4:01PM
Dow Jones News
By Adria Calatayud
Solvay plans to redeem bonds of 600 million euros ($647.7
million) due 2029 and will no longer seek consent from holders of
those bonds ahead of its planned split into two companies.
The Belgian chemicals company said late Monday that it is
investigating internally the circumstances of a trade between third
parties on its 2029 bonds. The company last month launched a
process to seek consent from bondholders to transfer outstanding
debts to a new company called Syensqo that will result from
Solvay's split, which it plans to complete by the end of the
year.
A meeting of holders of the 2029 bonds scheduled for Tuesday
won't take place after Solvay became aware that some votes cast in
favor of the consent may not have been validly exercised. Those
votes represented less than 3% of the total nominal amount, but
Solvay said it can't confirm that the required 75% majority for the
2029 bonds in the consent solicitation has been reached, it
said.
The company said it intends to redeem the 2029 bonds with
funding from its bank facilities, and that this will lead to an
additional cost of EUR20 million a year. Solvay decided to
terminate the consent solicitation in respect of the 2029 bonds as
a result, it said.
The consent solicitation in relation to Solvay's bonds due 2025
and 2027 are expected successful and meetings of holders of those
bonds will be held on Tuesday as planned, the company said.
Solvay last month said it offered to transfer outstanding debt
securities to the entity to be named Syensqo because it is the
stronger rated of the two entities that will emerge from its
separation.
Write to Adria Calatayud at adria.calatayud@dowjones.com
(END) Dow Jones Newswires
September 05, 2023 01:46 ET (05:46 GMT)
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