Brief: Solvay Announces Capital Structures And Financial Policies For Specialtyco And Essentialco

Solvac SA

16/06/2023 06:10

June 16 (Reuters) - Solvac SA  SOAC.BR :
    * SOLVAY ANNOUNCES CAPITAL STRUCTURES AND FINANCIAL POLICIES
FOR
SPECIALTYCO AND ESSENTIALCO
    * SPECIALTYCO AND ESSENTIALCO, THAT WILL RESULT FROM ITS
PLANNED
SEPARATION INTO TWO INDUSTRY LEADERS
    * SPECIALTYCO WILL MAINTAIN DISCIPLINED CAPITAL ALLOCATION
AND
WILL BE COMMITTED TO A STRONG INVESTMENT-GRADE RATING
    * ESSENTIALCO WILL BE COMMITTED TO AN INVESTMENT GRADE
RATING
    * CURRENT DIVIDEND LEVEL OF SOLVAY FOR 2023 FINANCIAL YEAR
WILL,
AFTER COMPLETION OF SEPARATION, BE APPORTIONED BETWEEN TWO
COMPANIES, WITH SPECIALTYCO ASSUMING 40% OF DIVIDEND SHARE
    * CURRENT DIVIDEND LEVEL OF SOLVAY FOR 2023 FINANCIAL YEAR
WILL,
AFTER COMPLETION OF SEPARATION, BE APPORTIONED TO ESSENTIALCO
FOR 60% OF DIVIDEND SHARE
    * ESSENTIALCO IS EXPECTED TO MAINTAIN SOLVAY'S CURRENT
DIVIDEND
POLICY OF STABLE OR INCREASING DIVIDENDS
    * SPECIALTYCO IS EXPECTED TO ADOPT A DIVIDEND POLICY THAT
ENABLES
COMPANY TO INVEST IN GROWTH
    * ESSENTIALCO IS EXPECTED TO ISSUE AROUND EUR 1.5BN IN NEW
BONDS
IN PERIOD FOLLOWING SEPARATION
    * EXISTING SOLVAY SA BONDHOLDERS WILL BE OFFERED OPPORTUNITY
TO
TRANSFER OBLIGATIONS TO SPECIALTYCO BEFORE SEPARATION
    * TARGET INDICATIVE CAPITAL STRUCTURES, UNDERLYING EBITDA:
EUR 1.3
BILLION ESSENTIALCO, EUR 1.9 BILLION SPECIALTYCO
    * TARGET INDICATIVE CAPITAL STRUCTURES, UNDERLYING NET DEBT:
EUR
1.9 BILLION ESSENTIALCO, EUR 1.6 BILLION SPECIALTYCO

Source text for Eikon:  ID:nGNE2F1Q0J 
Further company coverage:  SOAC.BR 

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