Chicago, June 7 – Cabot Corp. priced $400 million of 5% senior notes with a 10-year tenor (Baa2/BBB) on Tuesday, according to an FWP filed with the Securities and Exchange Commission.
The notes priced at 99.33 to yield 5.086%, or alternatively with a 212.5 basis points spread over the benchmark Treasury.
The notes will feature a make-whole call at Treasuries plus 35 bps followed by a par call starting March 30, 2032.
J.P. Morgan Securities LLC, Mizuho Securities USA LLC and U.S. Bancorp Investments, Inc. are the lead bookrunners.
Citigroup Global Markets Inc., Wells Fargo Securities, LLC, TD Securities (USA) LLC and PNC Capital Markets LLC are also listed as joint bookrunners.
Proceeds will be used to redeem the company’s $350 million of 3.7% notes due July 15, 2022. Any remaining funds will be used for working capital and other general corporate purposes, including repayment of commercial paper and amounts outstanding under the company’s revolving credit facilities.
Cabot is a specialty chemicals and performance materials company based in Boston.
| Issuer: | Cabot Corp.
|
| Amount: | $400 million
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| Issue: | Senior notes
|
| Maturity: | June 30, 2032
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| Bookrunners: | J.P. Morgan Securities LLC, Mizuho Securities USA LLC, U.S. Bancorp Investments, Inc., Citigroup Global Markets Inc., Wells Fargo Securities, LLC, TD Securities (USA) LLC and PNC Capital Markets LLC
|
| Co-managers: | BofA Securities, Inc., Loop Capital Markets LLC and HSBC Securities (USA) Inc.
|
| Trustee: | U.S. Bank Trust Co., NA
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| Counsel to issuer: | Ropes & Gray LLP
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| Coupon: | 5%
|
| Price: | 99.33
|
| Yield: | 5.086%
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| Spread: | Treasuries plus 212.5 bps
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| Call features: | Make-whole call at Treasuries plus 35 bps until March 30, 2032; thereafter at par
|
| Change of control: | At 101
|
| Trade date: | June 7
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| Settlement date: | June 22
|
| Ratings: | Moody’s: Baa2
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| S&P: BBB
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| Distribution: | SEC registered
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| Cusip: | 127055AM3
|
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