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

By Susanna Moon

Chicago, Nov. 17 – PPG Industries said it accepted tenders for $16.11 million of its $150 million 9% debentures due 2021 and $74,142,000 of its $250 million 7.7% notes due 2038.

The company expects to settle the tendered notes Monday with proceeds of its $300 principal amount of 2.3% notes due 2019 and cash on hand, according to a company press release.

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

As previously announced, the total payment will be $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 2.375% U.S. Treasury notes due Aug. 15, 2024 plus 90 basis points for the 9% debentures and the 3.375% U.S. Treasury notes due May 15, 2044 plus 120 bps for the 7.7% notes.

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

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

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

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

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