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 189.10, and will be adjusted on a yearly basis in case dividend paid to shareholders is higher than CHF 1.85 per share.
In 2019, Sika issued a Mandatory Convertible Bond in the amount of CHF 1,300 million, due 2022. Main purpose of the Bond is the partial financing of the Parex acquisition with equity. The mandatory conversion price is currently set at CHF 125.17 (minimum) and CHF 140.82 (maximum), depending on the share price at maturity, and adjusted on a yearly basis in case a dividend is paid to shareholders. S&P has granted high equity content for this instrument.
In 2019, Sika signed a Revolving Credit Facility in the amount of CHF 750 million, due 2025. Main purpose of the Facility 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). An extension option is in place. There are no financial covenants.
Overview Debt Maturity
||Issuer / Borrower||Tenor (years)||Maturity||Coupon||Conversion Price||Rating S&P|
|Straight Bond||CHF||170||Sika AG||3||12/07/2021||0.125%||-||A-|
|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%||189.10||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 2,690|
|Revolving Credit Facility||CHF||750||Sika AG||5||01/04/2024||-||-||-|
|Total Revolving Credit Facility||CHF 750|
|Mandatory Convertible Notes||CHF||1,300||Sika AG||3||30/01/2022||3.750%||125.17-140.82||BBB|
|Total Equity Instruments||CHF 1,300|
Bond Maturity Profile
in CHF mn