By Andrea Heisinger
New York, Sept. 14 - Corn Products International Inc. priced $900 million of senior unsecured notes (Baa2/BBB/BBB) in an upsized three tranches on Tuesday, an informed source said.
The deal was announced in a 424B5 filing with the Securities and Exchange Commission as being in two tranches.
A $350 million tranche of 3.2% five-year notes priced at 99.823 to yield 3.237% with a spread of Treasuries plus 180 basis points. The notes were priced at the tight end of guidance in the 180 bps to 190 bps range.
A $400 million tranche of 4.625% 10-year notes priced at 99.6 to yield 4.674% with a spread of 200 bps over Treasuries. The tranche was also priced at the tight end of talk in the range of 200 bps to 210 bps.
The final tranche was a reopening of 6.625% notes due 2037 to add $150 million. The notes priced at 105.495 to yield 6.2% with a spread of Treasuries plus 240 bps. The notes were sold at the wide end of talk in the range of 230 bps to 240 bps.
Revised guidance on the five-year and 10-year notes was 200 bps to 225, and both priced "much better," the source said.
The notes feature a change-of-control put at 101%.
J.P. Morgan Securities Inc., Bank of America Merrill Lynch and Citigroup Global Markets Inc. were the bookrunners.
Proceeds will be used to finance a portion of the consideration for the acquisition of National Starch from Akzo Nobel NV.
If the acquisition is not done by March 31, 2011, the notes will be redeemed at 101% of the note amount plus interest.
The food and industrial corn refiner is based in Westchester, Ill.
| Issuer: | Corn Products International Inc.
|
| Issue: | Senior unsecured notes
|
| Amount: | $900 million
|
| Bookrunners: | J.P. Morgan Securities Inc., Bank of America Merrill Lynch, Citigroup Global Markets Inc.
|
| Change-of-control put: | 101%
|
| Trade date: | Sept. 14
|
| Settlement date: | Sept. 21
|
| Ratings: | Moody's: Baa2
|
| Standard & Poor's: BBB
|
| Fitch: BBB
|
|
|
| Five-year notes
|
| Amount: | $350 million
|
| Maturity: | Nov. 1, 2015
|
| Coupon: | 3.2%
|
| Price: | 99.823
|
| Yield: | 3.237%
|
| Spread: | Treasuries plus 180 bps
|
| Price talk: | 180 bps to 190 bps
|
|
|
| 10-year notes
|
| Amount: | $400 million
|
| Maturity: | Nov. 1, 2020
|
| Coupon: | 4.625%
|
| Price: | 99.6
|
| Yield: | 4.674%
|
| Spread: | Treasuries plus 200 bps
|
| Price talk: | 200 bps to 210 bps
|
|
|
| Notes due 2037
|
| Amount: | $150 million, reopened
|
| Maturity: | April 15, 2037
|
| Coupon: | 6.625%
|
| Price: | 105.495
|
| Yield: | 6.2%
|
| Spread: | Treasuries plus 240 bps
|
| Price talk: | 230 bps to 240 bps
|
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