Bayer Issues Bonds, Closes Refinancing Of Monsanto Acquisition

(RTTNews) - German conglomerate Bayer AG (BAYZF.PK, BAYRY.PK, BYR.L) announced Tuesday that it is issuing bonds, through Dutch unit Bayer Capital Corp. B.V., with a volume of 5 billion euros guaranteed by Bayer AG. With this, the company has concluded refinancing of the Monsanto acquisition.

The issue comprises four tranches with differing maturities and exclusively targets institutional investors. It was more than four times oversubscribed. Bayer intends to have the bonds listed on the Luxembourg Stock Exchange.

Bayer CFO Wolfgang Nickl, said, "With this transaction, we have successfully concluded the refinancing of the Monsanto acquisition.... The investment-grade ratings from three rating agencies are evidence of Bayer's continued good credit standing following the acquisition."

Separately, Bayer announced that through US unit Bayer U.S. Finance II LLC, the company is issuing bonds with a volume of $15 billion guaranteed by the company.

The company intends to use the net proceeds from the bond issues to pay down portions of the syndicated credit facility used as bridge financing for the acquisition of Monsanto.