Evonik sets tranche sizes, talk for €600 million equivalent notes

By Paul A. Harris

Portland, Ore., June 16 - Germany's Evonik Carbon Black Ltd. set tranche sizes and price talk for its €600 million equivalent two-part offering of seven-year senior secured notes (B2/B) on Thursday, according to an informed source.

The notes in a $250 million minimum tranche are talked with a yield in the 9½% area.

Meanwhile the notes in a €425 million maximum tranche are talked with a yield in the 9¾% area.

Pricing is set for Friday.

The notes were introduced with pro forma guidance of 8¾% to 9%, according to market sources. However volatility which has rocked the global capital markets, also impacted the high-yield market, causing bond spreads to widen and new issue price talk to gap higher, a trader explained.

Goldman Sachs International, UBS and Barclays are managing the sale of notes, which will be issued via intermediate holding company Kinove Bondco German GmbH.

The Rule 144A and Regulation S notes come with three years of call protection and feature standard high-yield covenants.

Proceeds, along with proceeds from new bank debt, will be used to help fund the buyout of the Essen, Germany-based specialty chemical company by Rhone Capital LLC and Triton Advisers.

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