Lenzing AG Places New EUR 500 Million Hybrid Bond

Lenzing AG, a global leader in regenerated cellulose fibers, has successfully placed a new hybrid bond worth EUR 500 million. Initially set at a minimum of EUR 300 million with a coupon between 9.0% and 9.5%, strong market reception allowed the company to increase the bond size and set the coupon at 9.0%. This meets the lower end of the expected range.

The bond has a non-call period of three years and will settle on July 9, 2025. It aims to bolster Lenzing's capital structure and ensure secured financing through 2027. BNP Paribas and UniCredit coordinated the transaction, with several financial institutions acting as joint bookrunners.

Nico Reiner, CFO of Lenzing Group, highlighted this bond as a significant step in securing future financing, complementing their recent EUR 545 million syndicated loan. This enables continued focus on enhancing margins and free cash flow.