#United States #Dallas #Senior Notes #Celanese Corporation #cash tender offers

Celanese Launches Cash Tender Offers for Senior Notes

On March 5, 2025, Celanese Corporation, a leading global chemical and specialty materials company, has made a significant announcement. The company, listed on the NYSE as CE, revealed its plans to launch cash tender offers aiming to purchase certain senior notes. These offers target up to €500 million worth of 4.777% Senior Notes due in 2026 and $250 million worth of 6.415% Senior Notes maturing in 2027.

Details of the Tender Offers

Overview

Celanese US Holdings LLC, a wholly-owned subsidiary of Celanese Corporation, is at the forefront of these tender offers. The execution of these financial strategies is aligned with the company's goal to optimize its capital structure and manage debt effectively. The total principal amount for the tender offers stands at €500 million for the 4.777% Senior Notes, denoted as the EUR Notes, and $250 million for the 6.415% Senior Notes, referred to as USD Notes.

Terms and Conditions

The offers are subjected to specific terms outlined in the Offer to Purchase dated March 5, 2025. These conditions mark the framework for the acceptance of validly tendered notes until their expiration, set for April 2, 2025. Notably, the offers can be adjusted by the company at its discretion, marking the ability to increase or decrease the cap on each series of notes.

Once acquired, the purchased notes will be retired and cancelled, reflecting Celanese's strategy to strengthen its debt profile and financial flexibility. This move is anticipated to better position the company amid market fluctuations while maintaining investor confidence.

Financial Implications and Expectations

As per the announcement, the interest rates payable on the EUR Notes will rise to 5.277%, and for the USD Notes, it will adjust to 6.665% as of the next interest payment date. The increases reflect current market trends, allowing the company to retain competitiveness in the financial sector. Celanese is also obligated to meet several conditions prior to finalizing the purchase, including a financing condition that depends on concurrent offerings of new debt securities.

Key Dates

• - Early Tender Deadline: March 18, 2025, by 5:00 PM (NYC time)
• - Expiration Date: April 2, 2025, by 5:00 PM (NYC time)

Holders of validly tendered notes can expect payment promptly after the Early Tender Time and Expiration Time, scheduled respectively for March 21, 2025, and April 4, 2025. Notably, the amount of notes accepted may face proration based on the overall response to the tender offers.

Contact and Further Information

Interested parties can acquire further information through the offer process managed by D.F. King, assisting with the tender submissions. The primary contacts for queries include 212-269-5550 for banks and brokers or 800-207-3159 for all others. Additionally, J.P. Morgan Securities plc and J.P. Morgan Securities LLC have been appointed as dealer managers, facilitating the tender offers.

Celanese emphasizes the critical nature of confronting market dynamics through these tender offers, illustrating its commitment to prudent financial management. For stakeholders and investors alike, navigating the complexities of the bond market requires vigilance and adherence to specified timelines as presented in the Offer to Purchase.

In conclusion, Celanese’s initiative reflects an ambitious yet calculated approach toward financial structuring, aiming to solidify its standing in the global market while ensuring shareholder value remains a priority.