January 20th 2023
Eurofins Successfully Prices New €600m Hybrid Bonds
Eurofins Scientific (EUFI.PA, rated Baa3 by Moody’s and BBB- by Fitch, “Eurofins”) (Paris:ERF), a global leader in bioanalytical testing, announces that it has successfully raised €600m in its latest Euro hybrid bond public issuance. The transaction was well received and more than 2.7x times over-subscribed.
This new series of bonds has no specified maturity and is accounted for as 100% equity according to international financial reporting standards (IFRS) and 50% equity with the rating agencies Moody’s and Fitch. It will bear a fixed annual coupon of 6.75% for the first 5.5 years (until 24 July 2028), upon which date Eurofins can elect to repay them.
This issuance enables the group to return to its targeted capital structure that includes an adequate level of hybrid capital of €1bn1 to support its targeted range for financial leverage of 1.5-2.5x. The bonds’ proceeds are available for general corporate purposes. Outside of the planned repayment of the outstanding €183m in hybrid bonds callable on 29 April 2023, Eurofins has no major refinancing requirements until the outstanding €448m senior Eurobonds become due on 25 July 2024.
Comment from Dr. Gilles Martin, Eurofins CEO: “The successful issuance of our new €600m hybrid capital instrument reinforces Eurofins’ solid credit profile as well as confirms investor confidence in Eurofins’ positive business outlook.”
The bonds will be listed from their issue date (24 January 2023) on the regulated market of the Luxembourg stock exchange (ISIN XS2579480307). The bonds are not registered under the US Securities Act of 1933 as amended (the “Securities Act”), and may not be offered or sold in (i) the United States (as such term is defined in Regulation S under the Securities Act) unless registered under the Securities Act or pursuant to an exemption from such registration nor (ii) in any other jurisdiction where it is unlawful to do so.
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