PPG Industries prices cash tender offers for 9% debentures, 7.7% notes

By Marisa Wong

Madison, Wis., Nov. 14 – PPG Industries set pricing for its previously announced cash tender offers for any and all of its outstanding $150 million 9% debentures due 2021 and $250 million 7.7% notes due 2038, according to a press release.

The total consideration is $1,333.91 for each $1,000 principal amount of 9% debentures tendered and accepted for purchase and $1,506.15 for each $1,000 of 7.7% notes tendered and accepted for purchase.

Pricing was set at 2 p.m. ET on Nov. 14 using the yield to maturity of a U.S. Treasury reference security plus a fixed spread. The consideration for the 9% debentures was calculated based on the 2.375% U.S. Treasury notes due Aug. 15, 2024 plus 90 basis points, and the consideration for the 7.7% notes was based on the 3.375% U.S. Treasury notes due May 15, 2044 plus 120 bps.

PPG said it also will pay accrued interest up to but excluding the settlement date of Nov. 17.

The offers began on Nov. 6 and expire at 5 p.m. ET on Nov. 14.

The tender offers are not subject to any minimum tender condition, and neither offer is conditioned on completion of the other.

J.P. Morgan Securities LLC (866 834-4666 or 212 834-4811) is the dealer manager. D.F. King & Co., Inc. (866 416-0576 or 212 269-5550) is the information agent.

PPG is a diversified coatings and chemical manufacturing company based in Pittsburgh.

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