Sequa delays $700 million note offering to Nov. 26 week

By Paul A. Harris

St. Louis, Nov. 19 - Sequa Corp. will delay pricing its $700 million two-part offering of eight-year senior unsecured notes (Caa2/CCC+) until the post-Thanksgiving week, affording bond investors a chance to see how the company's bank loan prices, according to informed sources.

The $1.35 billion senior secured credit facility (B1/BB-) is comprised of a Libor plus 325 basis points $1.2 billion seven-year term loan talked at the 98.00 area, in addition to a $150 million six-year revolver talked at Libor plus 325 bps with a 50 bps commitment fee.

The note offering is comprised of tranches of cash-pay notes and discount notes. The discount notes feature a 2.5-year zero coupon.

Lehman Brothers is the lead bookrunner for the Rule 144A for life and Regulation S notes. Citigroup and JPMorgan are joint bookrunners.

The notes in both tranches come with four years of call protection, as well as three-year 35% equity clawbacks change-of-control puts at 101.

Proceeds will be used to help fund the $2.7 billion leveraged buyout of the company by the Carlyle Group.

Sequa is a New York-based diversified aerospace and industrial company.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.