Nashville, Jan. 21 - German chemical concern Celanese Corp. sold an upsized $240 million of perpetual convertible preferreds, which priced concurrently with its initial public offering, at par of 25 with a 4.25% dividend and 25% initial conversion premium.
The deal, upped from $200 million, sold at the middle of yield talk for a 4.0% to 4.5% dividend and aggressively outside premium guidance of 18% to 22%.
Morgan Stanley, Deutsche Bank, Goldman Sachs, Lehman Brothers and UBS are joint bookrunners.
The stock sold at $16 a share, fetching $800 million.
Celanese also plans a new $1.5 billion senior credit facility.
Proceeds are earmarked to partially redeem $207 million of its 10% senior discount notes, partially redeem $566 million of its 10.3675% senior subordinated notes, repay the existing $611 million of its senior credit facility, repay a $350 million floating-rate term loan and make a $952 million dividend to series B common stock holders, Blackstone Group.
Terms of the deal are:
| Issuer: | Celanese Corp.
|
| Issue: | Convertible preferreds
|
| Bookrunners: | Morgan Stanley, Deutsche Bank, Goldman Sachs, Lehman Brothers and UBS
|
| Amount: | $240 million, up from $200 million
|
| Maturity: | Perpetual
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| Coupon: | 4.25%
|
| Price: | Par, $25
|
| Yield: | 4.25%
|
| Conversion premium: | 25%
|
| Conversion price: | $20.00
|
| Conversion ratio: | 1.2500
|
| Contingent conversion: | No
|
| Contingent payment: | No
|
| Dividend protection: | Yes
|
| Takeover protection: | Yes
|
| Call: | Non-callable for 5 years, then with 130% hurdle for life
|
| Put: | No
|
| Price talk: | 4.0-4.5%, up 18-22%
|
| Pricing date: | Jan. 20, after market close
|
| Settlement date: | Jan. 26
|
| Distribution: | Registered
|
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