EQS-News: Lenzing Group: Joint venture LD Celulose successfully prices Green Notes

EQS-News: Lenzing Group: Joint venture LD Celulose successfully prices Green Notes

EQS-News: Lenzing AG / Key word(s): Bond/Sustainability
Lenzing Group: Joint venture LD Celulose successfully prices Green Notes

27.09.2024 / 11:45 CET/CEST
The issuer is solely responsible for the content of this announcement.

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Lenzing Group: Joint venture LD Celulose successfully prices Green Notes

 

• Pricing of USD 650 million senior secured green notes (the “Green
Notes”) at a coupon of 7.950 percent per annum from the joint venture
LD Celulose
• The offering was oversubscribed by 4.6 times as a result of high
demand from institutional investors

 

Lenzing – The Lenzing Group, a leading supplier of regenerated cellulose
fibers for the textile and nonwovens industries, announces that LD
Celulose International GmbH (the “Issuer”), a wholly owned subsidiary of
its Brazilian joint venture, LD Celulose S.A. (“LDC”), has successfully
priced the offering of Green Notes in an aggregate principal amount of USD
650 million.

 

The Green Notes, which mature on January 25, 2032 and bear a coupon of
7.950 percent per annum, were met with high demand from institutional
investors.

 

Part of the new financing structure of LDC with a total value of USD 1
billion is also a syndicated term loan in the amount of USD 350 million.
LDC intends to use the net proceeds from this offering, in addition to an
amount equivalent to the proceeds from the disbursement under the term
loan, and cash on hand, to permanently repay in full the existing
financing agreements and to allocate an amount equivalent to the proceeds
of the offering of the Notes to finance and refinance eligible investments
in accordance with the Green Financing Framework.

 

“The Lenzing Group has been a pioneer in the sustainable textile and
nonwovens industry and the production of dissolving wood pulp for decades
and has a clear plan to further green its production”, Rohit Aggarwal, CEO
of the Lenzing Group, stated. “The investors’ interest for LDC’s Green
Notes is also a result of our sustainability efforts.”

 

Nico Reiner, CFO of the Lenzing Group: “With the successful transaction,
LDC will convert the existing project financing, which enabled the
erection of one of the world’s largest dissolving wood pulp plant, into a
standalone corporate finance structure. It is another milestone for the
joint venture after having surpassed expectations in respect of its
nominal design capacity of 500,000 tons per year.”

 

The Green Notes will be issued by the Issuer and guaranteed by LDC and LD
Florestal S.A. The Green Notes will be listed on the Singapore Stock
Exchange.

 

 

Photo download:

[1] https://mediadb.lenzing.com/pinaccess/showpin.do?pinCode=oPqmoUCq9Fyr
PIN: oPqmoUCq9Fyr

 

 

   
Your contact for  
Public Relations: Investor Relations:
   
Dominic Köfner Sébastien Knus
Vice President Corporate Communications & Vice President Capital Markets
Public Affairs Lenzing Aktiengesellschaft
Lenzing Aktiengesellschaft Werkstraße 2, 4860 Lenzing,
Werkstraße 2, 4860 Lenzing, Austria Austria
   
Phone   +43 7672 701 2743 Telefon   +43 7672 701 3599
E-mail   [2]media@lenzing.com E-Mail     [4]s.knus@lenzing.com
Web      [3] www.lenzing.com Web        [5] www.lenzing.com
   
 

 

 

About the Lenzing Group
 
The Lenzing Group stands for eco-responsible production of specialty
fibers based on cellulose and recycled material. As an innovation leader,
Lenzing is a partner of global textile and nonwoven manufacturers and
drives many new technological developments. The Lenzing Group’s
high-quality fibers form the basis for a variety of textile applications
ranging from functional, comfortable and fashionable clothing to durable
and sustainable home textiles. Due to their special properties and their
botanical origin, the TÜV certified biodegradable and compostable Lenzing
fibers are also highly suitable for everyday hygiene products.
 
The business model of the Lenzing Group goes far beyond that of a
traditional fiber producer. Together with its customers and partners,
Lenzing develops innovative products along the value chain, creating added
value for consumers. The Lenzing Group strives for the efficient
utilization and processing of all raw materials and offers solutions to
help transform the textile industry from the current linear economic
system towards a circular economy. In order to reduce the speed of global
warming and thus also support the targets of the Paris Agreement and the
EU Commission’s “Green Deal”, Lenzing has developed a clear science-based
climate action plan that aims to significantly reduce greenhouse gas
emissions by 2030 and a net-zero goal (scope 1, 2 and 3) by 2050.
 
Key Facts & Figures Lenzing Group 2023
Revenue: EUR 2.52 bn
Nominal capacity: 1,110,000 tonnes
Employees (FTE): 7,917
 
TENCEL™, LENZING™ ECOVERO™, VEOCEL™, LENZING™ and REFIBRA™ are trademarks
of Lenzing AG.
About LD Celulose
 
LD Celulose S.A. is a joint venture between the Austrian
company Lenzing and the Brazilian company Dexco, and one of the world’s
largest dissolving wood pulp plants. Located in the Triângulo Mineiro
region, the plant is between the municipalities of Indianópolis and
Araguari. It has a production capacity of 500 thousand tons of dissolving
wood pulp per year, in addition to 144 MW of clean energy. The special
pulp fibers produced at LDC are used in the textile industry, generating
innovative, sustainable, and high-tech fabrics.
 
Important Notice
 
The offering was made only by means of an offering memorandum. This press
release does not constitute an offer to sell or a solicitation of an offer
to purchase any securities in any jurisdiction. In particular, this press
release does not constitute an offer, solicitation or sale in the United
States or any state or jurisdiction in which such an offer, solicitation
or sale would be unlawful. The notes have not been and will not be
registered under the Securities Act of 1933, as amended (the “Securities
Act”), the securities laws of any state of the United States or the
securities laws of any other jurisdiction. The notes and the related notes
guarantees are being offered solely to qualified institutional buyers
under Rule 144A and to non-U.S. persons outside the United States in
reliance on Regulation S under the Securities Act.  This press release may
include projections and other “forward-looking” statements within the
meaning of applicable securities laws. Any such projections or statements
reflect the current views of the Issuer about further events and financial
performance. No assurances can be given that such events or performance
will occur as projected and actual results may differ materially from
these projections.
It is not intended that the notes will be available to investors in
Austria. Hence, no notice pursuant to Section 24 of the Capital Market Act
of the Republic of Austria 2019 (Kapitalmarktgesetz 2019) (as amended, the
“Austrian Capital Market Act”), which provides that anyone intending to
offer securities (including the notes) in Austria has to file a notice to
the Oesterreichische Kontrollbank Aktiengesellschaft in its function as
notification office, will be submitted. The notes therefore may be offered
in Austria only if a notification to the emission calender
(Emissionsonskalender) of the Austrian Control Bank (Österreichische
Kontrollbank), all as prescribed by the Austrian Capital Market Act, has
been filed as soon as any person intends to offer notes in Austria, but in
any case no later than at least one Austrian bank working day prior to the
commencement of the relevant offer of the notes in Austria.
In any event, the offering is not a public offering in the Republic of
Austria. The notes may not be offered and sold in the Republic of Austria
except in accordance with the provisions of the Austrian Capital Markets
Act), the EU Prospectus Regulation and any other laws applicable in
Austria. No application will be made under Austrian law to permit a public
offer of the notes in the Republic of Austria. The offering memorandum
relating to the offering has not been and will not be submitted to, nor
has it been nor will it be approved by, the Austrian Financial Market
Authority (Finanzmarktaufsichtsbehörde) (“FMA”). FMA has not obtained and
will not obtain a notification from another competent authority of a
member state of the European Union (each, a “Member State”), with which a
securities prospectus may have been filed, pursuant to Article 25 of the
EU Prospectus Regulation. The notes must not be distributed within Austria
by way of a public offer, public advertisement or in any similar manner,
and the offering memorandum and any other document relating to the notes,
as well as information contained therein, may not be supplied to the
public in Austria or used in connection with any offer for subscription of
notes to the public in Austria. Consequently, in Austria the notes will
only be available to, and the offering memorandum and any other offering
material in relation to the notes is directed only at, persons who are
qualified investors (qualifizierte Anleger) within the meaning of Section
1 Paragraph 1 No. 6 of the Austrian Capital Market Act in connection with
Article 2 lit. e of the EU Prospectus Regulation or who are subject of
another exemption in accordance with Article 1 of the EU Prospectus
Regulation. The notes will in any event not be offered, sold or otherwise
made available to any retail investor in Austria. A “retail investor”
means a person who is one (or more) of: (i) a retail client as defined in
point (11) of Article 4(1) of MiFID II; or (ii) a customer within the
meaning of the Insurance Distribution Directive, in each case where that
customer would not qualify as a professional client as defined in point
(10) of Article 4(1) of MiFID II. Any resale of the notes in Austria may
only be made in accordance with the Austrian Capital Market Act, the EU
Prospectus Regulation and other applicable laws.
Further, any investors in the notes must be located outside of Austria for
the purposes of the Austrian Stamp Duty Act (Gebührengesetz 1957) and
agree to keep the offering memorandum, or any other documents or materials
relating to the offering memorandum or any stamp duty sensitive documents
referenced therein, or any certified copy, any document or any
communication which constitutes substitute documentation thereof,
including written confirmations thereof, and written references thereto,
outside of Austria (in each case within the meaning of the Austrian Stamp
Duty Act (Gebührengesetz 1957).
The notes have not been, and will not be, registered with the Brazilian
Securities Commission (Comissão de Valores Mobiliários) (the “CVM”) and,
therefore, may not be placed, distributed, offered or sold in the
Brazilian capital markets, except in circumstances that do not constitute
a public offering in Brazil under Law No. 6,385, of December 7, 1976, as
amended, or under Resolution No. 160, issued by the CVM on July 13, 2022,
as amended. Any representation to the contrary is untruthful and unlawful.
Documents relating to the offering of the notes, as well as information
contained therein, may not be supplied to the public in Brazil, nor used
in connection with any public offer for subscription or sale of the notes
to the public in Brazil. Persons wishing to acquire the notes within
Brazil should consult with their own counsel as to the applicability of
registration requirements or any exemption therefrom.
 

 

 

 

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27.09.2024 CET/CEST This Corporate News was distributed by EQS Group AG.
www.eqs.com

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Language: English
Company: Lenzing AG
4860 Lenzing
Austria
Phone: +43 7672-701-0
Fax: +43 7672-96301
E-mail: office@lenzing.com
Internet: www.lenzing.com
ISIN: AT0000644505
Indices: ATX
Listed: Vienna Stock Exchange (Official Market)
EQS News ID: 1997479

 
End of News EQS News Service

1997479  27.09.2024 CET/CEST

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