| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers A > Headlines for Akzo Nobel NV > News item |
AkzoNobel launches €485 million eight-year notes to yield 6½%; pricing Thursday
By Paul A. Harris
Portland, Ore., Sept. 20 – AkzoNobel NV launched a €485 million tranche of Starfruit Finco BV eight-year senior notes (Caa1/B-) to yield 6½%, according to market sources.
The launch comes inside of price talk in the 6¾% area. Initial price talk was in the high 6% area to 7%.
Books on the euro-denominated tranche were set to close early Thursday morning New York time.
Launch information on the downsized Starfruit US Holdco LLC $600 million tranche of the notes, with the same structure and ratings, was pending at press time, sources said.
Final talk on the dollar-denominated notes is 8% to 8¼%. Initial talk was in the 9% area.
The dollar-denominated tranche was downsized by €385 million, from €900 million equivalent, on Wednesday, and those €385 million of proceeds were shifted to the concurrent bank loan, leaving the overall amount of bonds at €1 billion equivalent and the loans at €5.5 billion equivalent.
The entire amount of bonds and loans are expected to price and allocate on Thursday.
Sole physical bookrunner Barclays will bill and deliver for the dollar-denominated notes tranche. Joint physical bookrunner HSBC will bill and deliver for the euro-denominated notes. Barclays and JPMorgan are also joint physical bookrunners for the euro-denominated bonds.
Barclays, HSBC and JPMorgan are the joint global coordinators for the bonds. Credit Suisse, Deutsche Bank, RBC, Morgan Stanley, Citigroup, Nomura, UBS, BNP Paribas, Credit Agricole CIB, MUFG, Mizuho, NatWest Investments and SG CIB are bookrunners. ABN Amro, Rabo and SEB are co-managers.
The notes in both tranches become callable after three years at par plus 50% of the respective coupons.
Proceeds will be used to help fund the buyout of AkzoNobel Specialty Chemicals by the Carlyle Group and GIC from AkzoNobel for an enterprise value of €10.1 billion.
Closing is expected before year-end, subject to regulatory approvals and other customary conditions.
AkzoNobel Specialty is a specialty chemicals 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.