Clariane : Clariane stages whirlwind bond market comeback

Yesterday, capitalising on a window of calm on the markets following the announcement of a ceasefire between Iran and Israel, Clariane launched the placement of a new bond maturing in June 2030 (five years).
The price-talk began in the "8.25% area" and the notes were issued during the day, with a final pricing of 7.875% (MS+565bp) and an increase in the size to € 400m (vs. € 300m initially forecast). More than € 1.15bn worth of orders were added to the book
The issuance is "non-rated'", with a prospectus that appears to be similar to previous issues. To our knowledge, a netroadshow was provided, but no conference call was held for investors. All this, combined with a very rapid placement, suggests that the transaction had already been worked out in advance and that the group had been waiting for the right time to take the plunge and capitalise on the announcement of the sale of Petits-fils ten days ago.
Since the syndicated loan was renegotiated in February, we assumed that Clariane was exploring its refinancing options on the bond markets, but we concede that we did not expect them to issue this soon and not necessarily in this format. Still, this is clearly good news as it will secure the repayment of financial maturities in 2025 and 2026, dispelling any residual liquidity concerns. That said, the notes were issued at 7.875%, significantly higher than the cost of the debt to be repaid. Clariane nevertheless plans to reduce the impact on its cash flow by reducing its overall gross debt.