By Paul A. Harris
St. Louis, March 25 - Hercules Inc. sold $250 million of 25-year putable senior subordinated notes (Ba3/B+) Thursday at par to yield 6¾%, a syndicate source said.
Price talk was in the area of 6½%.
Credit Suisse First Boston ran the books on the Rule 144A issue.
The notes will become senior unsecured obligations of Hercules following the retirement of the company's 11 1/8% senior notes.
Holders have the right to require Hercules to repurchase all or a portion of their notes beginning April 15, 2014 at par.
Proceeds from the bond sale will be used to refinance the company's existing credit facility and its 9.42% trust preferreds as well as for general corporate purposes.
The issuer is a Wilmington, Del.-based specialty chemical manufacturer.
| Issuer: | Hercules Inc.
|
| Amount: | $250 million
|
| Maturity: | Oct. 15, 2029
|
| Security description: | Senior subordinated notes
|
| Change in subordination: | Notes will become senior unsecured obligations of Hercules following the retirement of the company's 11 1/8% senior notes
|
| Bookrunner: | Credit Suisse First Boston
|
| Co-managers: | Wachovia Securities, others to be determined
|
| Coupon: | 6¾%
|
| Price: | Par
|
| Yield: | 6¾%
|
| Spread: | 302 basis points
|
| Put features: | Holders may require Hercules to repurchase all or a portion of their notes beginning April 15, 2014 at par
|
| Call features: | Callable after April 15, 2009 at 103.375, 102.250, 101.125, par on and after April 15, 2012
|
| Equity clawback: | Until April 15, 2007 at 106.75 for up to 35%
|
| Pricing date: | March 25
|
| Settlement date: | April 8
|
| Ratings: | Moody's: Ba3
|
| Standard & Poor's: B+
|
| Price talk: | 6½% area
|
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