By Adria Calatayud
Solvay plans to redeem bonds of 600 million euros ($647.7 million) due 2029 and will no longer seek consent from holders of those bonds ahead of its planned split into two companies.
The Belgian chemicals company said late Monday that it is investigating internally the circumstances of a trade between third parties on its 2029 bonds. The company last month launched a process to seek consent from bondholders to transfer outstanding debts to a new company called Syensqo that will result from Solvay’s split, which it plans to complete by the end of the year.
A meeting of holders of the 2029 bonds scheduled for Tuesday won’t take place after Solvay became aware that some votes cast in favor of the consent may not have been validly exercised. Those votes represented less than 3% of the total nominal amount, but Solvay said it can’t confirm that the required 75% majority for the 2029 bonds in the consent solicitation has been reached, it said.
The company said it intends to redeem the 2029 bonds with funding from its bank facilities, and that this will lead to an additional cost of EUR20 million a year. Solvay decided to terminate the consent solicitation in respect of the 2029 bonds as a result, it said.
The consent solicitation in relation to Solvay’s bonds due 2025 and 2027 are expected successful and meetings of holders of those bonds will be held on Tuesday as planned, the company said.
Solvay last month said it offered to transfer outstanding debt securities to the entity to be named Syensqo because it is the stronger rated of the two entities that will emerge from its separation.
Write to Adria Calatayud at [email protected]
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