Momentive pricing $1.1 billion tap of 6 5/8% notes due 2020 Wednesday

By Paul A. Harris and Aleesia Forni

Columbus, Ohio, Jan. 16 - Hexion U.S. Finance Corp. (Momentive Specialty Chemicals Inc.) plans to price a $1.1 billion add-on to its existing 6 5/8% first-priority senior secured notes due 2020 on Wednesday, a market source said.

J.P. Morgan Securities LLC, Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Goldman Sachs & Co., UBS Securities LLC, Bank of America Merrill Lynch, Credit Suisse Securities (USA) LLC and Morgan Stanley & Co. LLC are the joint bookrunners.

Apollo is a co-manager for the Rule 144A and Regulation S with registration rights deal.

The notes feature a make-whole call at Treasuries plus 50 bps until April 15, 2015 and will then be callable at 104.969.

Proceeds will be used to repay the company's $913 million term loan, to purchase any and all of its outstanding $120 million second-priority senior secured floating-rate notes due 2014 and for general corporate purposes.

The Columbus, Ohio-based specialty chemicals producer priced the original $450 million issue at par on March 5, 2012.

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