Clariane Launches a €230 Million Bond Issue to Refinance Its Hybrid Debt
Clariane announces the launch of an offering of additional senior bonds with a nominal amount of €230 million, bearing an interest rate of 6.875% and maturing in 2031.
Refinancing of Perpetual Green Hybrid Bonds
The group plans to use the net proceeds from the offering to refinance its non-convertible perpetual green hybrid bonds with a total nominal amount of £200 million issued in June 2021, currently carrying an annual coupon of 13.168%.
Assimilation to Existing Bonds and Covenant Adjustment
The Additional Bonds will have the same terms as the Existing Bonds issued under the issuance agreement of April 16, 2026 (nominal amount of €500 million, same rate of 6.875%, same maturity of 2031) and will be assimilated with them to form a single series. They will carry the same ISIN and common code and will be fungible with the Existing Bonds. Clariane has obtained the agreement of its banking partners to refinance its hybrid instruments in debt rather than equity, subject to a 'Wholeco' leverage below 6.0x (compared to 5.0x previously). With a leverage at 5.1x as of December 31, 2025, the company has this possibility. Pro forma of the refinancing and the issuance of the Existing Bonds, the 'Wholeco' leverage as of December 31, 2025 would be set at 5.5x. The levels of financial covenants have been adjusted and are now set at 7.5x as of June 30, 2026, 7.0x as of December 31, 2026, and June 30, 2027, 6.5x as of December 31, 2027, and June 30, 2028, then 6.0x from December 31, 2028 onwards. The targets related to 'Wholeco' financial leverage are mechanically adjusted to be below 5.5x as of December 31, 2026, and around 5x by the end of 2028.
