Villeroy & Boch : places €280 million promissory note loan

Villeroy & Boch has successfully placed its first €280 million promissory note loan, following the company's announcement of its acquisition of Ideal Standard in September 2023. It originally planned to place €150 million, but the volume was increased significantly given the substantial oversubscription, and conditions were set at the lower end of the marketing margin.

The promissory note loan comprises 12 tranches maturing in three, five and seven years. Each tranche features both fixed and variable-rate interest and will be paid out in December 2023 and January 2024.

Dr Markus Warncke, CFO of Villeroy & Boch, is delighted by the positive response to the transaction: "Demand for our debut transaction far exceeded our expectations. As a result, we have already established the medium- to long-term financing base for the purchase price payment in the Ideal Standard acquisition. Thanks to the high demand and the resulting increase in the volume, some of the future financing requirements for operating activities are already covered."

"Issuing the promissory note loan helped us diversify our financing sources and the maturities of our financing. We are delighted to have a broad investor base with 70 participating German and international investors," added Susanne Reiter, Head of Corporate Treasury and Investor Relations.

Landesbank Baden-Württemberg and Commerzbank AG played a key role in the successful placement of the promissory note loan as transaction arrangers.