Clarios completes refinancings to extend debt maturity profile

Clarios completes refinancings to extend debt maturity profile

Clarios completes refinancings to extend debt maturity profile 573 399 Batteries International

May 12, 2023. Clarios said on May 4 it had closed a bond offering of $750 million. In addition to the senior secured notes due in 2028, the world’s largest manufacturer of automotive batteries also announced the closing of a new tranche of term loans in an aggregate principal amount of $2.75 billion.

The new loan, at the secured overnight financing rate plus 3.75%, will mature in May 2030.

Clarios, which is owned by Brookfield Business Partners together with institutional partners of Brookfield Asset Management, said the gross proceeds from the offering of the notes, and the borrowings under the new term loan, were to repay around $3.5 billion of borrowings under the company’s existing term loan maturing in April 2026.

Clarios CEO Mark Wallace welcomed what he said was “strong continued support received from the market, which enabled us to almost triple the size of our debt offering.

“Upon closing, we will have successfully refinanced $3,500 million of our borrowings while extending the maturity of our capital structure through 2030 with virtually no increase to our overall borrowing costs.”

Clarios pulled out of a planned initial public offering in July 2022, telling Batteries International in September that the company was continuing to assess market conditions for the move.