Ashland Global announces early results of capped tender offer for four series of notes

By Rebecca Melvin

New York, Jan. 22 – Ashland Global Holdings Inc. announced the early results of a cash tender offer for four series of notes, and lifted the cap on Ashland LLC’s $1,082,563,000 outstanding 4¾% senior notes due 2022 to $712,152,749 from $575 million, while decreasing the waterfall notes maximum to $112,846,320 from $250 million. The tender offers are being made by the respective Ashland subsidiaries that issued the relevant series of notes.

The waterfall cash tender offers pertain to Hercules LLC’s $3,858,000 of outstanding 6.6% debentures due 2027, Ashland LLC’s $373,365,000 of outstanding 6 7/8% senior notes due 2043 and Hercules’ $99,986,000 of outstanding 6½% junior subordinated debentures due 2029.

As of 5 p.m. ET on Jan. 21, $756,537,000 principal amount of 2022 notes had been tendered, representing about 69.88% of the outstanding amount. In addition, $25,000 aggregate principal amount of the outstanding 2027 debentures were tendered, representing 0.65% of the outstanding amount, $92,153,000 principal amount of the outstanding 2043 notes where tendered, representing about 24.68% of the outstanding amount, and $2,925,000 aggregate principal amount of the outstanding 2029 debentures notes were tendered, representing about 2.93% of the outstanding 2029 debentures.

The withdrawal deadline has passed and, existing notes may no longer be withdrawn, except in limited circumstances. Ashland expects to settle the existing tendered notes subject to the order of priority and proration provisions. The tender offers will expire at 5 p.m. ET on Feb. 5.

As previously reported, the total tender considerations are as follows, with the notes listed in order of acceptance priority level:

• $1,061 per $1,000 note for the 2022 notes;

• $1,010 per $1,000 note for the 2027 debentures;

• $1,190 per $1,000 note for the 2043 notes; and

• $1,080 per $1,000 note for the 2029 notes.

The total tender consideration for each series of notes includes an early tender premium of $30 per $1,000 note.

Holders will also receive accrued interest.

Citigroup Global Markets Inc. (800 558-3745 toll free or 212 723-6106 collect), Deutsche Bank Securities Inc. (855 287-1922 toll free or 212 250-7527 collect) and J.P. Morgan Securities LLC (866 834-4666 toll free or 212 834-2042 collect) are the dealer managers. Global Bondholder Services Corp. (212 430-3774 for banks and brokers or 866 470-3800 toll-free) is the information agent.

Ashland is a Covington, Ky.-based chemical company.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.