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Press release
Investor Relations
August 30, 2016

Evonik successfully issues €1.9 billion of bonds

Not for disclosure, distribution or reproduction in the US, Canada, Australia or Japan.

  • Issuance concludes financing of the acquisition of the Specialty & Coating Additives business of Air Products
  • Three tranches with a volume between €500 and €750 million per Tranche
  • Attractive terms with coupons from 0% to 0.750% p.a.

Essen. Today, Evonik Industries AG has successfully issued via its subsidiary Evonik Finance B.V. bonds with a nominal value of €1.9 billion. Proceeds will be used for the planned acquisition of the Specialty & Coating Additives business of Air Products. The acquisition price of approximately €3.5 billion (3.8 billion US dollars) will be paid via cash reserves of €1.6 billion as well as the proceeds of the bonds.

In total Evonik issued three fixed-rate tranches:

  • €650 million with a tenor of 4.5 years and a coupon of 0%
  • €750 million with a tenor of 8 years and a coupon of 0.375%
  • €500 million with a tenor of 12 years and a coupon of 0.750%

"Today’s successful bond issuance has allowed us to secure long-term financing at very attractive terms and to conclude financing of the acquisition of the Specialty & Coating Additives business of Air Products” says Ute Wolf, Chief Financial Officer of Evonik Industries AG.

The placement of the bonds was significantly oversubscribed on the back of strong interest from a broad range of institutional investors incl. asset managers, insurance companies, pension funds and banks. Evonik benefited from its solid investment grade rating and the currently very favorable environment in the corporate bond markets.

The bonds will be rated Baa1 by Moody’s as well as BBB+ by S&P both with stable outlook. Today’s bond issuance reduces the average interest rate on capital market indebtedness from 1.35% p.a. (30 June 2016) to 0.74% p.a.

Joint Active Bookrunners were Barclays, BNP PARIBAS, Deutsche Bank, HSBC, J.P. Morgan and SG CIB and the bonds were placed with over 200 domestic and international institutional investors. The syndicate was supplemented by 19 Passive Bookrunners and two Co-Lead Managers all from the Evonik’s core group of relationship banks.

The planned acquisition of the Specialty & Coating Additives business of Air Products still remains subject to approval of the relevant antitrust authorities. Closing of the transaction is expected by end of this year.

Further information:
www.evonik.de



Company information
Evonik, the creative industrial group from Germany, is one of the world leaders
in specialty chemicals. Profitable growth and a sustained increase in the value of the company form the heart of Evonik’s corporate strategy. Its activities focus on the key megatrends health, nutrition, resource efficiency and globalization. Evonik benefits specifically from its innovative prowess and integrated technology platforms.

Evonik is active in over 100 countries around the world. In fiscal 2015 more than 33,500 employees generated sales of around €13.5 billion and an operating profit (adjusted EBITDA) of about €2.47 billion.

Disclaimer
This publication constitutes neither an offer to sell nor a solicitation of an offer to buy securities. In particular, this document constitutes neither an offer to sell nor a solicitation of an offer to purchase securities in the United States. The securities of Evonik Finance B.V. described above (the "Securities") may not be offered or sold in the United States or to or for the account or benefit of "U.S. persons" (as such term is defined in Regulation S under the U. S. Securities Act of 1933, as amended (the "Securities Act")) absent registration or an exemption from registration under the Securities Act. The Securities have not been and will not be registered under the Securities Act or the securities laws of any State of the United States. There will be no public offering of the Securities in the United States.

In so far as forecasts or expectations are expressed in this Investor Relations News or where our statements concern the future, these forecasts, expectations or statements may involve known or unknown risks and uncertainties. Actual results or developments may vary, depending on changes in the operating environment. Neither Evonik Industries AG nor its group companies assume an obligation to update the forecasts, expectations or statements contained in this release.