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Leverkusen, June 19, 2018 – Via its subsidiary, Bayer U.S. Finance II LLC, Pittsburgh, United States, the Bayer Group is issuing bonds with a volume of 15 billion U.S. dollars guaranteed by Bayer AG. The placement comprises eight tranches with differing maturities and exclusively targets international institutional investors. It was approximately three times oversubscribed and will secure the long-term financing of the Monsanto acquisition.
The bond with a maturity of three years and an aggregate volume of 2.5 billion U.S. dollars comprises a fixed rate tranche (1.25 billion U.S. dollars with a coupon of 3.50 percent p. a.) and a floating rate tranche with a volume of 1.25 billion U.S. dollars and an interest rate of 0.63 percentage points above the three-month Libor for the U.S. dollar.
The bond with a maturity of 5.5 years comprises a fixed rate tranche with a volume of 2.25 billion U.S. dollars and a coupon of 3.875 percent p. a. and a floating rate tranche with a volume of 1.25 billion U.S. dollars and an interest rate of 1.01 percentage points above the three-month Libor for the U.S. dollar.
The longer-term bonds have maturities of 7.5, 10.5, 20 and 30 years and fixed interest rates of 4.25 percent p. a. (volume of 2.5 billion U.S. dollars, maturing in 2025), 4.375 percent p. a. (volume of 3.5 billion U.S. dollars, maturing in 2028), 4.625 percent p. a. (volume of 1.0 billion U.S. dollars, maturing in 2038) and 4.875 percent p. a. (volume of 2.0 billion U.S. dollars, maturing in 2048).
Bayer intends to use the net proceeds from the bond issue to pay down portions of the syndicated credit facility used as bridge financing for the acquisition of Monsanto.
Bayer is a global enterprise with core competencies in the life science fields of health care and agriculture. Its products and services are designed to benefit people and improve their quality of life. At the same time, the Group aims to create value through innovation, growth and high earning power. Bayer is committed to the principles of sustainable development and to its social and ethical responsibilities as a corporate citizen. In fiscal 2017, the Group employed around 99,800 people and had sales of 35.0 billion euros. Capital expenditures amounted to 2.4 billion euros, R&D expenses to 4.5 billion euros. For more information, go to www.bayer.com.
This release may contain forward-looking statements based on current assumptions and forecasts made by Bayer management. Various known and unknown risks, uncertainties and other factors could lead to material differences between the actual future results, financial situation, development or performance of the company and the estimates given here. These factors include those discussed in Bayer’s public reports which are available on the Bayer website at www.bayer.com. The company assumes no liability whatsoever to update these forward-looking statements or to conform them to future events or developments.
This release does not constitute or relate to a public offer of securities for sale or a solicitation of an offer to purchase securities. The securities will not be or have not been registered under the U.S Securities Act of 1933 (the “Securities Act”) and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements under the Securities Act.