Published on 3/5/2012 in the Prospect News High Yield Daily.
New Issue: Hexion prices $450 million eight-year notes at par to yield 6 5/8%
By Paul A. Harris
Portland, Ore., March 5 - Hexion U.S. Finance Corp. priced a $450 million issue of eight-year first-priority senior secured notes (Ba3/B-/) at par to yield 6 5/8% on Monday, according to a syndicate source.
The yield printed on top of price talk that had tightened from earlier talk of 6¾% to 7%.
J.P. Morgan Securities LLC, Bank of America Merrill Lynch, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Morgan Stanley & Co. LLC and UBS Investment Bank were the bookrunners for the quick-to-market issue.
Hexion, a Columbus, Ohio-based thermoset resins company, plans to use the proceeds to repay its non-extended first-lien term loans.
Issuer: | Hexion U.S. Finance Corp.
|
Amount: | $450 million
|
Maturity: | April 15, 2020
|
Securities: | First-priority senior secured notes
|
Bookrunners: | J.P. Morgan Securities LLC, Bank of America Merrill Lynch, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Morgan Stanley & Co. LLC, UBS Investment Bank
|
Co-manager: | Apollo Global Securities
|
Coupon: | 6 5/8%
|
Price: | Par
|
Yield: | 6 5/8%
|
Spread: | 505 bps
|
Call features: | Make-whole call at Treasuries plus 50 bps until April 15, 2015, then callable at 104.969
|
Equity clawback: | 35% at 106.625 until April 15, 2015
|
Trade date: | March 5
|
Settlement date: | March 14
|
Ratings: | Moody's: Ba3
|
| Standard & Poor's: B-
|
Distribution: | Rule 144A and Regulation S with registration rights
|
Price talk: | 6 5/8%, revised from earlier talk of 6¾% to 7%
|
Marketing: | Quick to market
|
© 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.