Hochdorf Holdings has placed a subordinated hybrid public bond worth CHF125 million (€107m) on the Swiss capital market. The proceeds will be used to finance the remaining cash component for the 51% acquisition of the Pharmalys Group.

In addition, the proceeds will also be used to partially repay existing bank loans as well as general operations, including potential future acquisitions, the firm says.

The hybrid bond offers investors an initial coupon of 2.50% per annum and will be listed on the SIX Swiss Exchange. It has an eternal term with a first repayment option after 5.5 years.

“The broad demand for the hybrid bond testifies to the great interest of investors in Hochdorf. Now that the acquisition financing is complete, we are focusing our attention on the various opportunities that this forward integration opens up to us,” says Thomas Eisenring, CEO of the Hochdorf Group.