Bayer stuck between a rock and a hard place of rolling debt
Cercle Finance has obviously hidden the rates to avoid adding fuel to the fire and it is quite pitiful to hide almost the most important part of the press release which will make the thing seem like a trivial rollover of the debt when the consequences should be ever disastrous for the accounts.
SO
Calculation of the weight of the coupons to be paid under the laws of spreading
Bonds have fixed interest rates
• 6.125% per year (volume of 1.0 billion US dollars, maturity 2026),
= (1) i.e. $61.25 billion in annual coupons to be served and therefore for 3 years a total of $183.75 billion.
• 6.250% per year (volume 1.0 billion US dollars, maturity 2029),
= (2) i.e. $62.50 billion in annual coupons to be served and therefore for 6 years a total of $374.00 billion.
• 6.375% pa (volume of 1.25 billion US dollars, maturity 2026),
= (3) i.e. $79.668 billion in annual coupons to be served and therefore for 3 years a total of $239.06 billion.
• 6.500% per year (volume of 1.75 billion US dollars, maturing in 2033)
= (4) i.e. $113.75 billion in annual coupons to be served and therefore for 10 years a total of $1137.75 billion.
• and 6.875% per year (volume of 0.75 billion US dollars, maturing in 2053).
= (5) i.e. $51.26 billion in annual coupons to be served and therefore for 30 years a total of $1,546.87 billion.
Let’s recap in total
= (1) i.e. $61.25 billion in annual coupons to be served and therefore for 3 years a total of $183.75 billion.
= (2) i.e. $62.50 billion in annual coupons to be served and therefore for 6 years a total of $374.00 billion.
= (3) i.e. $79.668 billion in annual coupons to be served and therefore for 3 years a total of $239.06 billion.
= (4) i.e. $113.75 billion in annual coupons to be served and therefore for 10 years a total of $1137.75 billion.
= (5) i.e. $51.26 billion in annual coupons to be served and therefore for 30 years a total of $1,546.87 billion.
Or a summary total of coupons to be paid of +$3,481.43 billion
So for a volume of 5.75 billion US dollars, the bill indirectly increases by +60.64%.
This will quickly become untenable for Bayer given that the 2022 net debt has already peaked at €31.273 billion.