Published on 11/17/2014 in the Prospect News Investment Grade Daily.
New Issue: Albemarle prices $1.03 billion notes in tranches due 2019, 2024, 2044
By Aleesia Forni
Virginia Beach, Nov. 17 – Albemarle Corp. sold $1,025,000,000 senior notes (Baa3/BBB-/) in three parts, according to a market source and a FWP filed with the Securities and Exchange Commission.
The sale included $250 million of 3% five-year notes priced with a spread of 140 basis points. Pricing was at 99.875 to yield 3.027%.
A $425 million tranche of 4.15% notes due 2024 priced at 99.658 to yield 4.192%, or Treasuries plus 185 bps.
Finally, $350 million of 5.45% 30-year bonds sold at 99.705 to yield 5.47%, or Treasuries plus 240 bps.
All three tranches sold at the tight end of talk.
BofA Merrill Lynch, J.P. Morgan Securities LLC and Wells Fargo Securities LLC were the bookrunners.
Proceeds will be used to fund the company’s acquisition of Rockwood Holdings, Inc., with any remaining proceeds being used for general corporate purposes.
The specialty chemical company is based in Baton Rouge, La.
| Issuer: | Albemarle Corp.
|
| Issue: | Senior notes
|
| Amount: | $1,025,000,000
|
| Bookrunners: | BofA Merrill Lynch, J.P. Morgan Securities LLC, Wells Fargo Securities LLC
|
| Senior co-managers: | BNP Paribas Securities Corp., MUFG, RBS Securities Inc., SMBC Nikko Securities America Inc.
|
| Co-managers: | HSBC Securities (USA) Inc., U.S. Bancorp Investments Inc., PNC Capital Markets LLC, Williams Capital Group LP
|
| Trade date: | Nov. 17
|
| Settlement date: | Nov. 24
|
| Ratings: | Moody’s: Baa3
|
| Standard & Poor’s: BBB-
|
| Distribution: | SEC-registered
|
|
|
| Five-year notes
|
| Amount: | $250 million
|
| Maturity: | Dec. 1, 2019
|
| Coupon: | 3%
|
| Price: | 99.875
|
| Yield: | 3.027%
|
| Spread: | Treasuries plus 140 bps
|
| Price talk: | Treasuries plus 145 bps area, tightened from Treasuries plus 160 bps area
|
| Make-whole call: | Treasuries plus 25 bps prior to Nov. 1, 2019, then callable at par
|
|
|
| 10-year notes
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| Amount: | $425 million
|
| Maturity: | Dec. 1, 2024
|
| Coupon: | 4.15%
|
| Price: | 99.658
|
| Yield: | 4.192%
|
| Spread: | Treasuries plus 185 bps
|
| Price talk: | Treasuries plus 190 bps area, tightened from Treasuries plus 200 bps area
|
| Make-whole call: | Treasuries plus 30 bps prior to Sept. 1, 2024, then callable at par
|
|
|
| 30-year bonds
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| Amount: | $350 million
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| Maturity: | Dec. 1, 2044
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| Coupon: | 5.45%
|
| Price: | 99.705
|
| Yield: | 5.47%
|
| Spread: | Treasuries plus 240 bps
|
| Price talk: | Treasuries plus 245 bps area, tightened from Treasuries plus 250 bps area
|
| Make-whole call: | Treasuries plus 40 bps prior to June 1, 2044, then callable at par
|
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