Clariane - comment

Our first reaction to the 7–7.5% IPT for Clariane’s new six-year Senior Unsecured Notes was that it looked too wide, and the final 6.875% pricing confirms this view. Proceeds will repay €350m of term debt and €150m of real estate debt, materially extending the maturity profile and simplifying the capital structure, with existing facilities and covenants terminated. The new €700m RCF, expandable to €900m, also provides additional liquidity. Management reiterated its deleveraging targets of <5.5x wholeco leverage at YE26 and c.5.0x by YE28.