Debt overview

This section offers some important information for debt investors. The ability to flexibly use different sources of funds plays a key role in the financing of the Lonza Group. Lonza has therefore established a number of debt instruments.

Significant Debt Instruments as of 31 December 2019


CHF instruments Nominal Value
Straight bond (2012-2022) 105
Straight bond (2015-2020) 150
Straight bond (2016-2021) 250
Straight bond (2015-2023) 175
Straight bond (2017-2021) 125
Straight bond (2017-2024) 110
Syndicated Loan (2019-2024) 80
   
EUR instruments Nominal Value
Term Loan (2019-2020) 500
Schuldscheindarlehen (2017-2021) 325
Schuldscheindarlehen (2017-2023) 375 
Eurobond (2020-2027)* 500
   
USD instruments Nominal Value
Term Loan (2019-2024) 500
Term Loan (2019-2025) 200
Schuldscheindarlehen (2017-2022) 150
Schuldscheindarlehen (2017-2024) 50
Schuldscheindarlehen (2017-2024) 100
Syndicated Loan (2019-2024) 65
Others 187
*issued 21 April 2020 to replace EUR Term Loan

Initiation of S&P credit rating

Lonza announced the initiation of a public credit rating with Standard & Poor’s (S&P), which resulted in a BBB+ rating with a stable outlook. Lonza is committed to maintaining an investment-grade rating going forward.


Eurobond

In April 2020 Lonza issued its inaugural Eurobond with a coupon of 1.625% in the European capital market. The net proceeds were used to refinance existing debt and general corporate purposes. The new bond with a volume of EUR 500 million has a maturity of 7 years. The notes have been offered under a standalone Prospectus and will be listed on the Luxembourg Stock Exchange in denominations of EUR 100,000 by EUR 1,000.

Trust Deed 2020
Agency Agreement 2020
Lonza Finance International NV bylaws
Lonza Group AG bylaws


Term loans

In 2019, Lonza issued term loan tranches of EUR 500 million, USD 500 million and USD 200 million carrying floating interest rates and repayable in 2020, 2024 and 2025 respectively. The newly issued term loan effectively replaces the EUR 450 million and USD 489 million term loan tranches issued in 2017 with maturity dates in 2020 and 2022 and the bank loan of USD 200 million. The net proceeds received in 2019 totalled CHF 265 million.

German private placement (Schuldscheindarlehen)

The dual-currency German private placement (Schuldscheindarlehen) of EUR 700 million and USD 200 million tranches carry fixed and floating interest rates (LIBOR/EURIBOR + margin) respectively, and are repayable in 2021 (EUR 325 million), 2022 (USD 150 million), 2023 (EUR 375 million) and 2024 (USD 50 million). The single-tranche German private placement (Schuldscheindarlehen) of USD 100 million carry floating interest rates (LIBOR + margin) and is repayable in 2024.

Syndicated loans

In 2019 Lonza signed a syndicated loan with a consortium of banks on the following terms: Credit facility of CHF 1,000 million, of which CHF 80 million and USD 65 million was used as of 31 December 2019, due 2024, at floating interest rates. The new syndicated loan effectively replaces the syndicated loan signed in 2017 of which CHF 259 million were used as of 31 December 2018.

Others

Other current and non-current debt compromise industrial revenue bonds of USD 187 million issued by governmental institutions in the United States (repayable in 2020, 2022, 2025, 2030 and 2047).

 
     2019      2018
  Average interest rates %  % million CHF     Average interest rates %  %  million CHF
CHF 0.84
29
1 032

1.32 38
1 531
EUR 0.91
37 1 300

1.04 32 1 295
USD 3.12 34 1 208
3.03
30
1 236
Total
100 3 540


100 4 062