Bond overview
This section offers some important information for debt investors.
The ability to flexibly use different sources of funds plays a key role in the financing of the Lonza Group. Lonza has therefore established a number of debt instruments. |
The net debt comprises:
|
million CHF
|
|
2008
|
|
2009
|
|---|
|
Long-term debt
|
|
|
|
| |
Bonds
|
|
299
|
|
297
| |
Syndicated loan
|
|
498
|
|
497
| |
Due to banks and others:
|
|
|
|
| |
. Banks
|
13
|
|
22
|
| |
. Others
|
74
|
87
|
1
|
23
| |
Leasing
|
|
10
|
|
7
| |
Total
|
|
894
|
|
824
|
Straight bond (2009-2013)
Amount: CHF 300 million, due 27 May 2013. Interest: 3.75% p.a.
Annual interest expenses amount to CHF 11.25 million.
Following please find the prospectus for the straight bond. |
Syndicated loan
In order to finance the acquisition of the Biopharma and Bioproducts businesses from Cambrex, Lonza signed a syndicated loan of CHF 500 million with a consortium of banks in December 2006; the contract term is five years. It is based on floating rates (libor + margin depending on a margin grid) and was drawn down in February 2007. Lonza hedged the interest rate for the whole five years via interest rate swaps. |
Short-term debt (floating interest rates)
|
million CHF
|
2008
|
|
2009
|
|---|
|
|
|
|
| |
Due to banks and other financial institutions
|
585
|
|
46
| |
Others
|
176
|
|
169
| |
Long-term debt due within one year
|
|
|
|
- Convertible (2005 - 2009)
|
391
|
|
0
|
- Straight bond (2005-2010)
|
0
|
|
300
| |
Total
|
1 152
|
|
515
| |
Total debt
|
2 046
|
|
1 339
|
Loans and advances (floating interest rates)
|
million CHF
|
2008
|
|
2009
|
|---|
|
Long-term loans and advances
|
(9)
|
|
(32)
| |
Short-term loans and advances
|
(2)
|
|
(1)
| |
Cash and cash equivalents
|
(566)
|
|
(140)
| |
Total
|
(577)
|
|
(173)
| |
Net debt
|
1 469
|
|
1 166
|
| Loans and advances increased in 2009 compared with the prior year, mainly due to the loan granted to the TL Biopharmaceutical Ltd. joint venture. |
Breakdown of debt by currencies
|
million CHF
|
|
|
2008
|
|
|
2009
|
|---|
|
|
Average
|
|
|
Average
|
|
| |
|
interest
|
|
|
interest
|
|
| |
|
rates
|
|
|
rates
|
|
| |
|
%
|
%
|
|
%
|
%
|
| |
|
|
|
|
|
|
| |
CHF
|
2.63
|
83
|
1 706
|
2.54
|
83
|
1 108
| |
EUR
|
4.60
|
0
|
1
|
1.95
|
0
|
1
| |
USD
|
3.30
|
12
|
249
|
2.70
|
16
|
221
| |
Other
|
3.75
|
5
|
90
|
1.20
|
1
|
9
| |
Total
|
|
100
|
2 046
|
|
100
|
1 139
|
Breakdown of loans and advances by currencies
|
million CHF
|
|
|
2008
|
|
|
2009
|
|---|
|
|
Average
|
|
|
Average
|
|
| |
|
interest
|
|
|
interest
|
|
| |
|
rates
|
|
|
rates
|
|
| |
|
%
|
%
|
|
%
|
%
|
| |
|
|
|
|
|
|
| |
CZK
|
8.00
|
18
|
2
|
8.00
|
3
|
1
| |
US dollar
|
3.00
|
82
|
9
|
2.50
|
97
|
32
| |
Total
|
|
100
|
11
|
|
100
|
33
|
| Interest rates are floating rates. |
Other short-term liabilities
|
million CHF
|
2008
|
2009
|
|---|
|
|
|
| |
Short-Term Provisions
|
21
|
39
| |
Accrued liabilities and other payables
|
368
|
265
| |
Other interest-free liabilities
|
238
|
85
| |
Accrued interest payables
|
11
|
12
| |
Total
|
638
|
401
|
"Accrued liabilities and other payables" include accruals and deferred income, such as down-payments from customers and the fair values of financial instruments. In other interest-free liabilities, payments received from customer funding are included.The decrease in "Other interest-free liabilities" is due to the decrease in the customer funding liabilities relating to the sales of Lonza Singapore Biologics Pte Ltd to Genetech.
|
Straight bond (2010-2016)
Amount: CHF 400 million, due 2 June 2016. Interest: 3.00 % p.a. payable on 2 June, for the first time on 2 June 2011. The annual interest expenses amount to CHF 12.0 million.
Following please find the prospectus for the straight bond. |
|
|
