Cognis completes recent refinancing by replacing remaining PIK notes
Remaining PIK notes redeemed and refinanced by a new PIK loan of 362 million euros
This transaction follows the refinancing of Cognis' senior bank financing and second-lien debt and the earlier partial repayment of the PIK notes. In May 2007, Cognis issued notes and borrowed loans with a total value equivalent to 1.65 billion euros. The total value of both stages of the refinancing operation is approximately 2 billion euros. As a result, Cognis has achieved a considerable reduction in financing costs and improved its liquidity position going forward. The total interest saving will be about 74 million euros per year. Due to the fact that there is no scheduled amortization on the new financing instruments, the company expects to see a net cash gain of approximately 100 million euros per year.
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