The company says it wants to take advantage of the ‘favourable market environment’ by planning the bond issue as a means of re-financing existing financial debt, building on plans to comprehensively reorganize its finances.
The bond issue will be the first of a series of measures aimed at refinancing a total debt of €550m that is due to be paid off at the end of 2011.
Bond issue first step in refinancing
To this end, the company says it is planning to discuss the bond issue with institutional investors later this month and has appointed UniCredit, Commerzbank and Deutsche Bank to manage the transaction.
“The planned bond issue is an important step to our financing activities,” said Bernd Hirsch, Symrise chief financial officer, who added that the move was part of plans announced this spring to optimize the company’s longer-term financing.
“We are convinced that our profitability, our robust cash flow and our solid equity basis will attract great interest,” Hirsch added.
Symrise bounces back after slow 2009
After experiencing a slowdown in 2009 due to the effects of the global economic crisis, Symrise said earlier this year that its orders for both flavour and fragrance ingredients had bounced back to pre-crisis levels.
The company, which holds 4th spot in the flavour and fragrance top ten, saw groups sales up 16.4 per cent in the first six months of this year to €797.5m, compared to the same period of recession-struck 2009. In flavour and nutrition, sales were up 12.9 per cent, and in fragrance and care, 19.9 per cent.
In scent and care, where fine fragrances and personal care had been most hit by the economic downturn, double digit sales growth was seen in EMEA, Asia Pacific, and North America. In Latin America, growth was 9 per cent.
Expanding fragrance production
The company said that its scent and care business benefitted from new product launches, including both SymMollient and Ambrocenide, while sales to core customers grew 12.8 per cent.
The stronger results has also encouraged the company to ramp up production of fragrance at its Holzminden site by investing in new production facilities.
The company says it is aiming to centralise the production of fragrance oil at the facility by investing in two sets of new dosing and mixing facilities to meet increased demand.