Albemarle says $367.38 million 2019, 2020 notes tendered; sets pricing

By Wendy Van Sickle

Columbus, Ohio, Jan. 10 – Albemarle Corp. announced the pricing and expiration of its any and all tender offers for two series of notes.

The company said $192,187,000 of its $250 million 3% senior notes due 2019 were tendered. For those notes, the company will pay a total consideration of $1,036.47 for each $1,000 principal amount, a price that was set using the 1.5% U.S. Treasury note due Oct. 31, 2019 plus 25 basis points.

As for the $350 million 4.5% senior notes due 2020, holders tendered $175,191,000 of the notes, and the company will pay $1,082.65 per $1,000 principal amount, a price that was set using the 1.375% U.S. Treasury note due Aug. 31, 2020 plus 50 bps.

The total amounts tendered include $135,000 of 2019 notes and the $475,000 of 2020 notes tendered under the guaranteed delivery procedures.

The tender offers opened Jan. 4, along with capped tender offers for two other series of notes.

Holders will also receive accrued interest up to but excluding the payment date of Jan. 11 or Jan. 13 in the case of the notes tendered under the guaranteed delivery procedures.

The any-and-all offers ended at 5 p.m. ET on Jan. 10.

Albemarle plans to redeem any 2019 notes not tendered in the any-and-all offers.

The company also is tendering for a maximum amount of two other series of notes equal to $325 million, a figure that was based on $500 million less the amount of 2020 notes purchased in the any-and-all offer.

In the capped offer, pricing will be set as follows, with the notes listed in order of priority acceptance levels:

• €700 million 1.875% senior notes due 2021 using the interpolated mid-swap rate plus 35 bps; and

• $425 million 4.15% senior notes due 2024 using the 2% U.S. Treasury note due Nov. 15, 2026 plus 85 bps.

The total purchase price in the capped offers will include an early tender premium of €30.00 per €1,000 of 1.875% notes and $30.00 per $1,000 of 4.15% notes tendered by 5 p.m. ET on Jan. 18, the early tender date.

The maximum tender offers will remain open until 11:59 p.m. ET on Feb. 1. Tendered notes may be withdrawn before the early deadline.

Notes tendered by the early deadline will be given priority over notes tendered afterward.

The company said it may increase or decrease the maximum repurchase amount.

Holders will also receive accrued interest up to but excluding the payment date of Jan. 20 for early tendered notes and Feb. 2 for any remaining tenders.

Albemarle will fund the tender with proceeds from the sale of its Chemetall Surface Treatment segment.

The tender offers are being made to reduce the company’s outstanding debt, according to a company announcement.

BofA Merrill Lynch (888 292-0070, 980 387-3907 or +44 20 7996 5420) is the dealer manager. D.F. King & Co., Inc. (800 967-4617, 212 269-5550, 888 542-7446, +44 20 7920 9700, dfking.com/alb) is the tender and information agent.

Albemarle is a Baton Rouge, La., specialty chemicals company.

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