Solvay Improves its Capital Structure
Solvay S.A., Brussels, Belgium, announced that its affiliate Rhodia SA will redeem in advance its two high-yield senior notes as part of the Group's aim to significantly reduce its gross debt.
Rhodia SA has notified the bond holders of its decision to fully and irrevocably redeem its €500 million high-yield notes, with an annual interest rate of 7 percent and due in 2018, as well as its USD 400 million high-yield notes, with an interest rate of 6.875 percent and due in 2020. Solvay will simultaneously repay the notes on May 15th with its available cash.
"Solvay is proactively managing its capital structure aiming to optimize asset efficiency while maintaining appropriate liquidity levels. By June 2015, Solvay will have halved its gross debt, paying off 1.8 billion euros within 18 months," said Karim Hajjar, Solvay's Chief Financial Officer. "As a result, Solvay will accelerate a reduction of net interest charges and of negative carry."
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