Company Announcements

 

• Pricing of USD 650 million senior secured green notes (the “Green Notes”) at a coupon of 7.950 percent per annum from the joint venture LD Celulose
• The offering was oversubscribed by 4.6 times as a result of high demand from institutional investors

 

Lenzing – The Lenzing Group, a leading supplier of regenerated cellulose fibers for the textile and nonwovens industries, announces that LD Celulose International GmbH (the “Issuer”), a wholly owned subsidiary of its Brazilian joint venture, LD Celulose S.A. (“LDC”), has successfully priced the offering of Green Notes in an aggregate principal amount of USD 650 million.

 

The Green Notes, which mature on January 25, 2032 and bear a coupon of 7.950 percent per annum, were met with high demand from institutional investors.

 

Part of the new financing structure of LDC with a total value of USD 1 billion is also a syndicated term loan in the amount of USD 350 million. LDC intends to use the net proceeds from this offering, in addition to an amount equivalent to the proceeds from the disbursement under the term loan, and cash on hand, to permanently repay in full the existing financing agreements and to allocate an amount equivalent to the proceeds of the offering of the Notes to finance and refinance eligible investments in accordance with the Green Financing Framework.

 

“The Lenzing Group has been a pioneer in the sustainable textile and nonwovens industry and the production of dissolving wood pulp for decades and has a clear plan to further green its production”, Rohit Aggarwal, CEO of the Lenzing Group, stated. “The investors’ interest for LDC’s Green Notes is also a result of our sustainability efforts.”

 

Nico Reiner, CFO of the Lenzing Group: “With the successful transaction, LDC will convert the existing project financing, which enabled the erection of one of the world’s largest dissolving wood pulp plant, into a standalone corporate finance structure. It is another milestone for the joint venture after having surpassed expectations in respect of its nominal design capacity of 500,000 tons per year.”

 

The Green Notes will be issued by the Issuer and guaranteed by LDC and LD Florestal S.A. The Green Notes will be listed on the Singapore Stock Exchange.

 

 

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Your contact for Public Relations:   Dominic Köfner Vice President Corporate Communications & Public Affairs Lenzing Aktiengesellschaft Werkstraße 2, 4860 Lenzing, Austria   Phone   +43 7672 701 2743 E-mail   media@lenzing.com Web      www.lenzing.com

Investor Relations:   Sébastien Knus Vice President Capital Markets Lenzing Aktiengesellschaft Werkstraße 2, 4860 Lenzing, Austria   Telefon   +43 7672 701 3599 E-Mail     s.knus@lenzing.com Web        www.lenzing.com

 

 

About the Lenzing Group   The Lenzing Group stands for eco-responsible production of specialty fibers based on cellulose and recycled material. As an innovation leader, Lenzing is a partner of global textile and nonwoven manufacturers and drives many new technological developments. The Lenzing Group’s high-quality fibers form the basis for a variety of textile applications ranging from functional, comfortable and fashionable clothing to durable and sustainable home textiles. Due to their special properties and their botanical origin, the TÜV certified biodegradable and compostable Lenzing fibers are also highly suitable for everyday hygiene products.   The business model of the Lenzing Group goes far beyond that of a traditional fiber producer. Together with its customers and partners, Lenzing develops innovative products along the value chain, creating added value for consumers. The Lenzing Group strives for the efficient utilization and processing of all raw materials and offers solutions to help transform the textile industry from the current linear economic system towards a circular economy. In order to reduce the speed of global warming and thus also support the targets of the Paris Agreement and the EU Commission’s “Green Deal”, Lenzing has developed a clear science-based climate action plan that aims to significantly reduce greenhouse gas emissions by 2030 and a net-zero goal (scope 1, 2 and 3) by 2050.   Key Facts & Figures Lenzing Group 2023 Revenue: EUR 2.52 bn Nominal capacity: 1,110,000 tonnes Employees (FTE): 7,917   TENCEL™, LENZING™ ECOVERO™, VEOCEL™, LENZING™ and REFIBRA™ are trademarks of Lenzing AG.

About LD Celulose   LD Celulose S.A. is a joint venture between the Austrian company Lenzing and the Brazilian company Dexco, and one of the world’s largest dissolving wood pulp plants. Located in the Triângulo Mineiro region, the plant is between the municipalities of Indianópolis and Araguari. It has a production capacity of 500 thousand tons of dissolving wood pulp per year, in addition to 144 MW of clean energy. The special pulp fibers produced at LDC are used in the textile industry, generating innovative, sustainable, and high-tech fabrics.

Important Notice   The offering was made only by means of an offering memorandum. This press release does not constitute an offer to sell or a solicitation of an offer to purchase any securities in any jurisdiction. In particular, this press release does not constitute an offer, solicitation or sale in the United States or any state or jurisdiction in which such an offer, solicitation or sale would be unlawful. The notes have not been and will not be registered under the Securities Act of 1933, as amended (the “Securities Act”), the securities laws of any state of the United States or the securities laws of any other jurisdiction. The notes and the related notes guarantees are being offered solely to qualified institutional buyers under Rule 144A and to non-U.S. persons outside the United States in reliance on Regulation S under the Securities Act.  This press release may include projections and other “forward-looking” statements within the meaning of applicable securities laws. Any such projections or statements reflect the current views of the Issuer about further events and financial performance. No assurances can be given that such events or performance will occur as projected and actual results may differ materially from these projections. It is not intended that the notes will be available to investors in Austria. Hence, no notice pursuant to Section 24 of the Capital Market Act of the Republic of Austria 2019 (Kapitalmarktgesetz 2019) (as amended, the “Austrian Capital Market Act”), which provides that anyone intending to offer securities (including the notes) in Austria has to file a notice to the Oesterreichische Kontrollbank Aktiengesellschaft in its function as notification office, will be submitted. The notes therefore may be offered in Austria only if a notification to the emission calender (Emissionsonskalender) of the Austrian Control Bank (Österreichische Kontrollbank), all as prescribed by the Austrian Capital Market Act, has been filed as soon as any person intends to offer notes in Austria, but in any case no later than at least one Austrian bank working day prior to the commencement of the relevant offer of the notes in Austria. In any event, the offering is not a public offering in the Republic of Austria. The notes may not be offered and sold in the Republic of Austria except in accordance with the provisions of the Austrian Capital Markets Act), the EU Prospectus Regulation and any other laws applicable in Austria. No application will be made under Austrian law to permit a public offer of the notes in the Republic of Austria. The offering memorandum relating to the offering has not been and will not be submitted to, nor has it been nor will it be approved by, the Austrian Financial Market Authority (Finanzmarktaufsichtsbehörde) (“FMA”). FMA has not obtained and will not obtain a notification from another competent authority of a member state of the European Union (each, a “Member State”), with which a securities prospectus may have been filed, pursuant to Article 25 of the EU Prospectus Regulation. The notes must not be distributed within Austria by way of a public offer, public advertisement or in any similar manner, and the offering memorandum and any other document relating to the notes, as well as information contained therein, may not be supplied to the public in Austria or used in connection with any offer for subscription of notes to the public in Austria. Consequently, in Austria the notes will only be available to, and the offering memorandum and any other offering material in relation to the notes is directed only at, persons who are qualified investors (qualifizierte Anleger) within the meaning of Section 1 Paragraph 1 No. 6 of the Austrian Capital Market Act in connection with Article 2 lit. e of the EU Prospectus Regulation or who are subject of another exemption in accordance with Article 1 of the EU Prospectus Regulation. The notes will in any event not be offered, sold or otherwise made available to any retail investor in Austria. A “retail investor” means a person who is one (or more) of: (i) a retail client as defined in point (11) of Article 4(1) of MiFID II; or (ii) a customer within the meaning of the Insurance Distribution Directive, in each case where that customer would not qualify as a professional client as defined in point (10) of Article 4(1) of MiFID II. Any resale of the notes in Austria may only be made in accordance with the Austrian Capital Market Act, the EU Prospectus Regulation and other applicable laws. Further, any investors in the notes must be located outside of Austria for the purposes of the Austrian Stamp Duty Act (Gebührengesetz 1957) and agree to keep the offering memorandum, or any other documents or materials relating to the offering memorandum or any stamp duty sensitive documents referenced therein, or any certified copy, any document or any communication which constitutes substitute documentation thereof, including written confirmations thereof, and written references thereto, outside of Austria (in each case within the meaning of the Austrian Stamp Duty Act (Gebührengesetz 1957). The notes have not been, and will not be, registered with the Brazilian Securities Commission (Comissão de Valores Mobiliários) (the “CVM”) and, therefore, may not be placed, distributed, offered or sold in the Brazilian capital markets, except in circumstances that do not constitute a public offering in Brazil under Law No. 6,385, of December 7, 1976, as amended, or under Resolution No. 160, issued by the CVM on July 13, 2022, as amended. Any representation to the contrary is untruthful and unlawful. Documents relating to the offering of the notes, as well as information contained therein, may not be supplied to the public in Brazil, nor used in connection with any public offer for subscription or sale of the notes to the public in Brazil. Persons wishing to acquire the notes within Brazil should consult with their own counsel as to the applicability of registration requirements or any exemption therefrom.