Lenzing AG Proposes Exchange Offer for 2020 Hybrid Bond

Lenzing AG has announced an intended exchange offer for its EUR 500 million undated subordinated fixed rate notes, known as the Hybrid Bond 2020. The offer targets qualifying holders to exchange their existing notes for new ones at a 90% value, with the remaining 10% paid in cash. The maximum cash consideration is capped at EUR 50 million. This exchange offer aims to optimize Lenzing AG's debt profile and reduce financing costs, with the offer period expected from June 16 to July 2, 2025.

Alongside this exchange, Lenzing AG plans to issue new euro-denominated undated subordinated fixed rate notes, classified as equity under IFRS. These new notes, referred to as Hybrid Bond 2025, will rank senior to the 2020 bond and maintain a fixed interest rate with one-sided termination rights by Lenzing AG. The company emphasizes that this announcement is not an invitation for participation where unlawful under applicable securities laws.