Clariant Repays Syndicated Term Loans.MUTTENZ, Switzerland -- Clariant has prepaid pre·pay tr.v. pre·paid, pre·pay·ing, pre·pays To pay or pay for beforehand. pre·pay  ment n. its syndicated term
loans. The move simplifies Clariant's debt liabilities, increases
its issuing flexibility and significantly reduces the number of its bank
lenders. It also enables the company to take advantage of lower interest
rates and longer maturities commensurate com·men·su·rate adj. 1. Of the same size, extent, or duration as another. 2. Corresponding in size or degree; proportionate: a salary commensurate with my performance. 3. with its recent investment grade rating. A total of CHF CHF In currencies, this is the abbreviation for the Swiss Franc. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. 1,060 million of syndicated term debt has been repaid, which would ordinarily or·di·nar·i·ly adv. 1. As a general rule; usually: ordinarily home by six. 2. In the commonplace or usual manner: ordinarily dressed pedestrians on the street. mature between 2006 and 2009. The repayment sum includes the outstanding debt, interest prepayment Prepayment 1. The payment of a debt obligation prior to its due date. 2. The excess payment over a scheduled debt repayment amount. Notes: 1. Examples include deferred expenses such as rent and early loan repayments. 2. compensation and swap unwinding costs. Clariant has used approx. CHF 750 million of excess cash to repay these lines and the balance was refinanced by drawing down on more flexible revolving credit Revolving Credit A line of credit where the customer pays a commitment fee and is then allowed to use the funds when they are needed. It is usually used for operating purposes, fluctuating each month depending on the customers current cash flow needs. facilities. Retiring this debt early has incurred total one-time costs of up to CHF 70 million, which will appear on 2005's P&L. However, as an investment grade borrower, this cost will swiftly be recouped by the lower interest rates that Clariant can now command. "Repaying our syndicated term loan facilities is an important step in simplifying and optimizing our liabilities," said Chief Financial Officer Francois Note. "Now our debt is rated investment grade, we can take advantage of preferential pref·er·en·tial adj. 1. Of, relating to, or giving advantage or preference: preferential treatment. 2. rates available on alternative facilities. This is another important milestone for us and is in line with the goals of our Transformation Program." Clariant was assigned as·sign tr.v. as·signed, as·sign·ing, as·signs 1. To set apart for a particular purpose; designate: assigned a day for the inspection. 2. issuer ratings 'BBB' from Standard & Poor's and 'Baa2' from Moody's in November. Calendar of Corporate Events February 28, 2006 Full Year 2005 Results; Annual Media Conference April 7, 2006 Annual General Meeting May 9, 2006 First Quarter 2006 Results August 2, 2006 First Half 2006 Results November 7, 2006 Nine Month 2006 Results Clariant - Exactly your chemistry. Clariant is a global leader in the field of specialty chemicals A Specialty chemical is a chemical produced for a specialized use. They are produced in lower volume than bulk chemicals, of which petrochemicals, made from oil feedstocks, are the most common. However, both are produced in a chemical plant. . Strong business relationships, commitment to outstanding service and wide-ranging application know-how make Clariant a preferred partner for its customers. Clariant, which is represented on five continents with over 100 group companies, employs about 24,000 people. Headquartered in Muttenz near Basel, it generated sales of around CHF 8.5 billion in 2004. Clariant's businesses are organized in five divisions: Textile, Leather & Paper Chemicals, Pigments & Additives, Functional Chemicals, Life Science Chemicals and Masterbatches. Clariant is committed to sustainable growth springing from its own innovative strength. Clariant's innovative products play a key role in its customers' manufacturing and treatment processes or else add value to their end products. The company's success is based on the know-how of its people and their ability to identify new customer needs at an early stage and to work together with customers to develop innovative, efficient solutions. www.clariant.com |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion