By Paul Deckelman
New York, Nov. 2 – Entegris, Inc. priced an upsized $550 million of 8.25-year senior notes (Ba3/BB-) on Thursday at par to yield 4 5/8%, high-yield syndicate sources said.
The issue was enlarged from the $450 million originally announced.
The issue came on the tight side of price talk envisioning a yield in the 4¾% area.
That Rule 144A and Regulation S for life deal was brought to market via left lead bookrunner Goldman Sachs & Co., with BofA Merrill Lynch and Morgan Stanley & Co. LLC also serving as bookrunners.
The transaction was first announced on Wednesday and then was marketed to prospective investors via a Thursday morning investor call plus small-group meetings before it priced later in the day on Thursday.
The notes will have three years of call protection, first becoming callable at par plus 75% of the coupon, then par plus 50% of the coupon, par plus 25% of the coupon, and then finally at just par.
The company, a Billerica, Mass.-based provider of specialty chemicals and advanced materials solutions for the microelectronics industry, plans to use the new-deal proceeds to redeem its $360 million of outstanding 6% notes due 2022 at a price of 104.5 plus accrued interest, to pay fees and expenses related to the redemption of the 2022 notes and for general corporate purposes.
| Issuer: | Entegris, Inc.
|
| Amount: | $550 million, upsized from originally announced $450 million
|
| Security: | Senior secured notes
|
| Maturity: | Feb. 10, 2026 (8.25 years)
|
| Bookrunners: | Goldman Sachs & Co., BofA Merrill Lynch, Morgan Stanley & Co. LLC
|
| Coupon: | 4 5/8%
|
| Price: | Par
|
| Yield: | 4 5/8%
|
| Spread: | 232 bps over UST 1 5/8% due Feb. 15, 2026
|
| Call feature: | Make-whole call at Treasuries plus 50 bps until Nov. 20, 2020, then callable on or after Nov. 20, 2020 at 103.46875; callable on or after Nov. 20, 2021 at 102.3125, callable on or after Nov. 20, 2022 at 101.15625, then finally callable at par on or after Nov. 20, 2023
|
| Trade date: | Nov. 2
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| Settlement date: | Nov. 10
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| Ratings: | Moody’s: Ba3
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| S&P: BB-
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 4¾% area
|
| Marketing: | Second-day investor call
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