By Paul A. Harris
St. Louis, Aug. 4 - Nell AF S.A.R.L. (Basell) priced a downsized €1 billion equivalent issue of 10-year senior notes (B2/B-) on Thursday, according to a market source.
In tranches of $615 million and €500 million the bonds priced at par to yield 8 3/8%, on top of revised price talk. Initially the bonds had been talked at 8½% to 8¾%.
Merrill Lynch & Co. and Credit Suisse First Boston were bookrunners for the Rule 144A/Regulation S offering. ABN Amro, Citigroup and Deutsche Bank Securities were co-managers.
Of the initial €1.1 billion equivalent planned issue size, €100 million was shifted to the B and C tranches of the company's senior debt.
Proceeds will be used to partially fund the leveraged buyout of Basell by Access Industries.
According to an investor, the order book for the bond deal was 1.5-times oversubscribed.
Basell, a joint venture presently owned by BASF and Shell Chemical, manufactures polyolefins for applications in appliances, as well as in food and beverage packaging. It has headquarters in Hoofddorp, The Netherlands.
| Issuer: | Nell AF S.A.R.L. (Basell)
|
| Amount: | €1 billion equivalent (decreased from €1.1 billion equivalent)
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| Dollar tranche: | $615 million
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| Euro tranche: | €500 million
|
| Maturity: | Aug. 15, 2015
|
| Security description: | Senior notes
|
| Bookrunners: | Merrill Lynch & Co., Credit Suisse First Boston
|
| Co-managers: | ABN Amro, Citigroup, and Deutsche Bank Securities
|
| Coupon: | 8 3/8%
|
| Price: | Par
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| Yield: | 8 3/8%
|
| Spreads: | Dollar tranche: 408 basis points
|
| Euro tranche: 505 basis points
|
| Call features: | Callable after Aug. 15, 2010 at 104.188, 102.792, 101.396, par on and after Aug. 15, 2013
|
| Equity clawback: | Until Aug. 15, 2008 for 35% at 108.375
|
| Trade date: | Aug. 4
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| Settlement date: | Aug. 10
|
| Ratings: | Moody's: B2
|
| Standard & Poor's: B-
|
| Price talk: | 8 3/8% area, revised from 8½%-8¾%
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