Arkema Proposed Hybrids Assigned Intermediate Equity Content And 'BBB-' Rating

Arkema plans to issue €300 million of junior subordinated hybrid securities, which we expect will prefinance the still outstanding portion of its existing €700 million hybrid, issued in 2014 with a first call date in October 2020. This follows the €400 million hybrid issued in June 2019. We assess the proposed securities as having intermediate equity content. At the same time, we will revise the equity content of the €300 million remaining 2014 hybrid to minimal from intermediate upon deal completion, because we believe the instrument will be repaid upon first call date. We are assigning our 'BBB-' issue rating to the proposed securities to reflect their subordination and optional deferability. PARIS (S&P Global Ratings) Jan. 14, 2020--S&P Global Ratings

...January 14, 2020 - Arkema plans to issue 300 million of junior subordinated hybrid securities, which we expect will prefinance the still outstanding portion of its existing 700 million hybrid, issued in 2014 with a first call date in October 2020. - This follows the 400 million hybrid issued in June 2019. - We assess the proposed securities as having intermediate equity content. - At the same time, we will revise the equity content of the 300 million remaining 2014 hybrid to minimal from intermediate upon deal completion, because we believe the instrument will be repaid upon first call date. - We are assigning our '###-' issue rating to the proposed securities to reflect their subordination and optional deferability. PARIS (S&P Global Ratings) Jan. 14, 2020--S&P Global Ratings today assigned its '###-' long-term issue rating to the proposed hybrid capital securities to be issued by Arkema S.A. (###+/Stable/A-2). The amount is expected to be 300 million, subject to market conditions. The...

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