May 18, 2006
Bayer bond issues successfully placed
totaling approximately EUR 3 billion. The proceeds will be used to replace a portion
of the bridging facility provided by Citigroup and Credit Suisse to partially refinance
the planned acquisition of Schering.
A three-year floating-rate Eurobond in the amount of EUR 1.6 billion will bear
interest at 22.5 basis points over Euribor. The seven-year fixed-rate Eurobond with a
volume of EUR 1.0 billion carries a 4.5 % coupon and is priced at 55 basis points
(0.55%) over swaps. The 12-year fixed-rate sterling bond in the amount of GBP 250
million carries a 5.625 percent coupon and a spread of 106 basis points (1.06 %) over
Since the issues met with great interest on the capital market, the transactions were
completed on schedule. At the end of March the company already placed a
subordinated mandatory convertible bond with a volume of EUR 2.3 billion including
greenshoe, and successfully closed the syndication of a EUR 7 billion loan on May 11.