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VIENNA - Austrian cellulose fiber producer Lenzing AG has completed a €500 million perpetual bond offering without any market stabilization measures, according to a statement from BNP Paribas (OTC:BNPQY).
The bond carries an interest rate of 9% until July 9, 2028, after which it will switch to a floating rate of 3-year mid-swaps plus the initial margin plus a 500 basis points step-up.
BNP Paribas, acting as the stabilization manager, confirmed that no stabilization activities were undertaken for the securities, which were priced at 100% of face value. Other banks involved in the transaction included UniCredit, Commerzbank (ETR:CBKG), Erste Group, JP Morgan, and RBI.
Perpetual bonds, which have no maturity date, are often used by companies seeking to strengthen their balance sheets while maintaining financial flexibility. The step-up feature after three years typically incentivizes issuers to redeem the bonds at that point.
The securities were not registered under the U.S. Securities Act and were not offered to investors in the United States, according to the release.
This information is based on a post-stabilization period announcement from BNP Paribas dated July 3, 2025.
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