DALLAS--(BUSINESS WIRE)--Celanese Corporation (NYSE: CE), a global chemical and specialty materials company, today priced $7.5 billion in permanent financing for the acquisition of a majority of DuPont’s Mobility & Materials business (the “acquisition”).
The Company announced that its subsidiary, Celanese US Holdings LLC (the “Company”), has priced a registered offering (the “Offering”) of $7.5 billion aggregate principal amount of notes of various maturities with interest rates ranging from 5.91% to 6.38% (the “Notes”). The Notes will be guaranteed on a senior unsecured basis by the Company and certain Celanese domestic subsidiaries, similar to prior issuances. The Offering is expected to close on or about July 14, 2022.
The Company simultaneously entered into a cross-currency swap to effectively convert $2.5 billion of the US dollar denominated Notes into a euro-denominated borrowing at prevailing euro interest rates.
The effective net borrowing rate to the Company will be approximately 5.6%, inclusive of the yield on the Notes and the beneficial impact of the currency swap.
“We are pleased to have secured a significant portion of the permanent financing for the M&M acquisition in this first window of opportunity,” said Scott Richardson, executive vice president and chief financial officer. “We were purposeful in securing an amount of debt that maintained competitive rates considering current debt market conditions. The cross-currency swap we simultaneously entered will help to align our currency mix with our anticipated global earnings while reducing our total borrowing cost. Looking to the future, we expect to have multiple windows and potential funding sources to secure the remaining financing, with flexibility depending on market conditions and the eventual timing to close the acquisition.”
BofA Securities, Citigroup, Deutsche Bank Securities, HSBC and J.P. Morgan are acting as Joint Book-Running Managers for the offering of Notes. When available, a copy of the preliminary prospectus supplement and accompanying base prospectus relating to the offering may be obtained by calling or emailing BofA Securities, Inc. at 1-800-294-1322 or dg.prospectus_requests@bofa.com, by calling Citigroup Global Markets Inc. c/o Broadridge Financial Solutions at 1-800-831-9146, by calling Deutsche Bank Securities Inc. at 1-800-503-4611, by calling HSBC Securities (USA) Inc. at 1-866-811-8049 or by calling J.P. Morgan Securities LLC collect at 1-212-834-4533.
An electronic copy of the preliminary prospectus supplement and accompanying base prospectus may also be obtained at no charge at the Securities and Exchange Commission’s website at www.sec.gov.
This press release does not constitute an offer to sell or a solicitation of an offer to buy the securities described herein, nor shall there be any sale of these securities in any jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. The offering may be made only by means of a prospectus and prospectus supplement meeting the requirements of Section 10 of the Securities Act of 1933, as amended. The offering will be made pursuant to an effective shelf registration statement, which was previously filed by Celanese with the Securities and Exchange Commission, and a prospectus supplement and accompanying prospectus, which will be filed by Celanese with the Securities and Exchange Commission.
About Celanese
Celanese Corporation is a global chemical leader in the production of differentiated chemistry solutions and specialty materials used in most major industries and consumer applications. Our businesses use the full breadth of Celanese's global chemistry, technology and commercial expertise to create value for our customers, employees, shareholders and the corporation. As we partner with our customers to solve their most critical business needs, we strive to make a positive impact on our communities and the world through The Celanese Foundation. Based in Dallas, Celanese employs approximately 8,500 employees worldwide and had 2021 net sales of $8.5 billion.
Forward-Looking Statements: This release may contain “forward-looking statements,” which include information concerning the Company’s plans, objectives, goals, strategies, future revenues, cash flow, synergies, performance, capital expenditures and other information that is not historical information. When used in this release, the words “outlook,” “forecast,” “estimates,” “expects,” “anticipates,” “projects,” “plans,” “intends,” “believes,” “will” and variations of such words or similar expressions are intended to identify forward-looking statements. All forward-looking statements are based upon current expectations and beliefs and various assumptions. There can be no assurance that the Company will realize these expectations or that these beliefs will prove correct. There are a number of risks and uncertainties that could cause actual results to differ materially from the results expressed or implied by the forward-looking statements contained in this release. These include changes in currency exchange rates and interest rates, the effectiveness of our hedging activities; the Company’s ability to obtain regulatory approval for, and satisfy closing conditions relating to the acquisition, the timing of closing thereof, and the Company’s ability to realize the anticipated benefits of the acquisition and its hedging activities. Numerous other factors, many of which are beyond the Company’s control, could cause actual results to differ materially from those expressed as forward-looking statements. Other risk factors include those that are discussed in the Company’s filings with the Securities and Exchange Commission. Any forward-looking statement speaks only as of the date on which it is made, and the Company undertakes no obligation to update any forward-looking statements to reflect events or circumstances after the date on which it is made or to reflect the occurrence of anticipated or unanticipated events or circumstances.
