History

Pursuant to Section 10 Para. 2 Austrian Stock Corporation Act in the version of the Corporate Law Amendment Act 2011 (BGBl I Nr 53/2011), Lenzing Aktiengesellschaft was required, due to the legal changes, to replace all individual share certificates in the company by one (or several) global certificates for deposit with Oesterreichische Kontrollbank Aktiengesellschaft (in its capacity as the securities deposit bank in accordance with Section 1 Para. 3 Austrian Securities Deposit Act) or an equivalent foreign institution.

The Extraordinary General Meeting of Lenzing AG held on December 10, 2010 resolved to re-divide the company’s share capital by means of a seven-for-one share split. As a result, the number of bearer shares increased by 22,050,000 shares from the previous level of 3,675,000 shares. Accordingly, the share capital of the company was divided into 25,725,000 no-par value bearer shares, each of which with a proportionate share of the share capital of about EUR 1.0385.   

The corresponding changes were entered into the company register of the Wels Regional Court on December 22, 2010. The implementation of the stock split as well as the conversion of the listing on the Vienna Stock Exchange took place on December 28, 2010 (ex-day). 

The shares in circulation up until then maintained their validity. Shareholders were entitled to additional six bearer shares for every bearer share in their possession. It was not planned to print securities certificates.

Lenzing AG successfully issued a corporate bond on September 27, 2010 with a tenor of seven years at a volume of EUR 120 mn. The bond was issued in a denomination of EUR 1,000 and a coupon rate of 3.875%. The bond was listed on the second regulated market of the Vienna Stock Exchange with the ISIN AT0000A0K2K7 and could be purchased over the counter. The annual coupon of 3.875% demonstrated the high credit rating on the part of investors.

The offering was four times oversubscribed. About 75% of the volume was assigned to private Austrian investors due to the strong level of demand. Approximately 90% was placed with private and institutional Austrian investors, the rest with foreign institutional investors.

The corporate bond aimed to diversify the creditor structure.

The net proceeds were used by Lenzing for optimizing the company's financing portfolio, enhancing its financial strength, refinancing existing financial liabilities as well as for financing new projects such as developing and extending established business activities.

Appointed joint lead managers of the bond issue were UniCredit Bank Austria AG and Raiffeisen Zentralbank Österreich AG, senior co-lead managers were Raiffeisenlandesbank Oberösterreich AG, Erste Group and Oberbank AG, and co-lead managers were: Investkredit Bank AG, Sparkasse Oberösterreich and BAWAG P.S.K.

The bond was paid back at the maturity date of September 27, 2017.