By Paul A. Harris
Portland, Ore., Jan. 17 - Eagle Spinco Inc., which will become a wholly owned subsidiary of Georgia Gulf Corp., priced a $688 million issue of eight-year senior notes (confirmed Ba3/expected BB-) at par to yield 4 5/8% on Thursday, according to a syndicate source.
The yield printed at the tight end of yield talk set in the 4¾% area.
Barclays was the left bookrunner.
J.P. Morgan Securities LLC, RBC Capital Markets LLC and Wells Fargo Securities LLC were the joint bookrunners.
Proceeds will be used to fund the acquisition of Eagle SpinCo Inc. (PPG Commodity Chemicals) from PPG.
The issuer is a Pittsburgh-based producer of chlorine, caustic soda and related chemicals.
| Issuer: | Eagle Spinco Inc. (which will become a wholly owned subsidiary of Georgia Gulf Corp.)
|
| Amount: | $688 million
|
| Maturity: | Feb. 15, 2021
|
| Securities: | Senior notes
|
| Left bookrunner: | Barclays
|
| Joint bookrunners: | J.P. Morgan Securities LLC, RBC Capital Markets LLC, Wells Fargo Securities LLC
|
| Coupon: | 4 5/8%
|
| Price: | Par
|
| Yield: | 4 5/8%
|
| Call features: | Make-whole call at Treasuries plus 50 bps until Feb. 15, 2018, then callable at 102.313, 101.156, par on and after Feb. 15, 2020
|
| Change-of-control put: | 101%
|
| Trade date: | Jan. 17
|
| Settlement date: | Jan. 30
|
| Ratings: | Moody's: Ba3
|
| Standard & Poor's: expected BB-
|
| Distribution: | Rule 144A and Regulation S with registration rights
|
| Price talk: | 4¾% area
|
| Marketing: | Roadshow
|
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