Sika's straight bonds show a well balanced and conservative debt maturity profile.
In 2018, Sika issued a convertible bond in the amount of CHF 1,650 million, due 2025, to partially finance the acquisition of its own shares from Compagnie de Saint-Gobain. The conversion price is currently set at CHF 188.45, and will be adjusted on a yearly basis in case dividend paid to shareholders is higher than CHF 1.85 per share.
In 2019 and 2021, Sika signed two Revolving Credit Facilities in the amount of CHF 750 million each, both due 2026. Main purpose of the Facilities is to cover the seasonality in the construction business, the pre-financing of acquisitions, and the reduction of the Group's cash position (thereby reducing the impact of the current negative interest environment). There are no financial covenants.
Overview Debt Maturity
||Issuer / Borrower||Tenor (years)||Maturity||Coupon||Conversion Price||Rating S&P|
|Straight Bond||CHF||150||Sika AG||10||12/07/2022||1.750%||-||A-|
|Straight Bond||CHF||200||Sika AG||10||14/11/2023||1.875%||-||A-|
|Straight Bond||CHF||250||Sika AG||6||12/07/2024||0.625%||-||A-|
|Convertible Bond||CHF||1,650||Sika AG||7||05/06/2025||0.150%||188.45||A-|
|Straight Bond||EUR||500||Sika Capital B.V., NL (Guarantee from Sika AG)||8||29/04/2027||0.875%||-||A-|
|Straight Bond||CHF||130||Sika AG||8||12/07/2028||1.125%||-||A-|
|Straight Bond||EUR||500||Sika Capital B.V., NL (Guarantee from Sika AG)||12||29/04/2031||1.500%||-||A-|
|Total Debt Instruments||CHF 2,520|
|Revolving Credit Facility (2021)||CHF||750||Sika AG||5||13/12/2026||-||-||-|
|Revolving Credit Facility (2019)||CHF||750||Sika AG||7||01/04/2026||-||-||-|
|Total Revolving Credit Facility||CHF 1,500|