Successful inaugural bond issue

Successful inaugural bond issue for Mölnlycke Health Care

Mölnlycke Health Care, a world-leading provider of single-use surgical and wound care products, successfully launched on 7 November an inaugural EUR 500 million bond, maturing in February 2022, with an annual fixed coupon of 1,5%.

Following a well-attended road show, there was strong and widespread investor demand for the bond issue, which was more than 7x oversubscribed. “This is a statement of market confidence in Mölnlycke Health Care and our sound, long-term corporate strategy”, said Richard Twomey, CEO.

The Issuer, Mölnlycke Holding AB (publ), was recently assigned ‘BBB’ long-term corporate rating with stable outlook by Standard & Poor’s.

The bond issue will be used to refinance existing bank debt and will enable Mölnlycke Health Care to extend its debt maturity profile at an attractive cost, increase financial flexibility and support the Group’s continued growth.

Demand came from leading investors in all regions: UK 25%, Germany 23%, France 19%, the Nordics 19%, Netherlands 5% Switzerland 5%, and other 7%. Asset managers were the leading investor type with 68%, followed by insurance/pension funds with 19%, while official institutions contributed with 5%, banks with 5% and other with 4%.

 

Notes for editors

Last week’s bond is the first issued by Mölnlycke Health Care. Since 2007, the company is owned by Investor AB, the leading owner of Nordic-based international companies, founded by the Wallenberg family a hundred years ago.

Mölnlycke Health Care made its first capital distribution to Investor –amounting to EUR 130 million- in Q3 this year.

 

Contacts

Only for press inquiries:
Òscar Romero, Corporate Communications, Mölnlycke Health Care
Oscar.romero@molnlycke.com

Investor relations:
Magnus Dalhammar, Investor AB
Magnus.Dalhammar@investorab.com