Bayer signs financing agreement for Aventis CropScience acquisition
In the first half of 2002, the bridge facility will be refinanced through the issuance of benchmark bonds, which will be jointly bookmanaged by the aforementioned banks, and the ongoing issuance of commercial paper (CP).
This financing strategy involves a long-term increase in the volume of outstanding commercial paper. In the second quarter of 2002 the three banks will therefore syndicate a backup facility to support ongoing commercial paper issuance.
Bayer had already expanded its existing financing programs in preparation for raising funds in the capital markets. The volume of the global CP program was increased from US$ 5 billion to US$ 8 billion and that of the European Medium Term Note (EMTN) program from EUR 2 billion to EUR 8 billion.
The acquisition of Aventis CropScience will put Bayer close behind the world leader in the agrochemical market. It is planned to combine the crop protection activities of Bayer and Aventis CropScience into a new company named Bayer CropScience, which will target EUR 8.1 billion in sales and a 20 percent operating margin for 2005.
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