Lenzing AG Announces Intended Exchange Offer For 2020 Hybrid Bond
Lenzing AG intends to launch an exclusive exchange offer for its existing EUR 500 million undated subordinated resettable fixed rate notes (ISIN: XS2250987356, issued December 7, 2020), known as the Hybrid Bond 2020.
Under the proposed Exchange Offer, qualifying holders will have the option to exchange their Existing Notes at a ratio of 90% of the aggregate principal amount for new euro-denominated undated subordinated resettable fixed rate notes (Hybrid Bond 2025), plus a 10% cash consideration, subject to certain conditions. The total cash consideration is capped at EUR 50 million.
The exchange period is expected to run from on or about June 16, 2025, to July 2, 2025. The transaction does not constitute a redemption under § 6(3)(a) or (b) of the Existing Notes’ terms and conditions.
With this initiative, Lenzing AG aims to optimize its debt structure and reduce financing costs.
In parallel, Lenzing AG also plans to issue new euro-denominated undated subordinated resettable fixed rate notes (New Money Notes) through a separate cash offering.
The Hybrid Bond 2025 will mirror key features of the 2020 bond, including its subordinated status, fixed interest rate, perpetual term, and issuer’s right to terminate. The new bond will be classified as equity under IFRS and will rank senior to the Hybrid Bond 2020.
