By Paul A. Harris
Portland, Ore., June 29 – Huntsman Corp. and Venator Materials plc priced an upsized $375 million issue of eight-year senior notes (B2/BB-) at par to yield 5¾% on Thursday, according to a syndicate source.
The amount was increased from $350 million.
The yield printed at the tight end of the 5¾% to 6% yield talk.
Citigroup Global Markets Inc. was the left bookrunner. BofA Merrill Lynch, JP Morgan Securities LLC, Barclays, HSBC, PNC Capital Markets, RBC Capital Markets LLC, Goldman Sachs & Co. and SunTrust Robinson Humphrey were the joint bookrunners.
The notes have a special mandatory redemption should the spinoff of Venator from Huntsman not be completed by March 31, 2018, in which case the issuer will redeem the notes at par plus accrued interest.
The issuing entities will be Venator Finance Sarl and Venator Materials Corp., wholly owned subsidiaries of Huntsman and Venator Materials.
A concurrent term loan was also upsized to $375 million from $350 million.
Proceeds will initially be placed into escrow pending an initial public offering and will then be used to repay inter-company debt owed to Huntsman and to pay a dividend to Huntsman and its subsidiaries. The transactions are part of the spinoff of Venator from Huntsman. The additional proceeds resulting from the upsizing of the bonds and loan will be used to fund a dividend to Hunstman.
The issuers are manufacturers and marketers of chemical products and are headquartered in The Woodlands, Texas.
| Issuer: | Venator Finance Sarl and Venator Materials Corp.
|
| Amount: | $375 million, increased from $350 million
|
| Maturity: | July 15, 2025
|
| Securities: | Senior notes
|
| Left bookrunner: | Citigroup
|
| Joint bookunners: | BofA Merrill Lynch, JP Morgan, Barclays, HSBC, PNC, RBC, Goldman Sachs, SunTrust
|
| Co-manager: | Commerzbank
|
| Coupon: | 5¾%
|
| Price: | Par
|
| Yield: | 5¾%
|
| Spread: | 357 bps
|
| Call: | Make-whole call at Treasuries plus 50 bps until July 15, 2020, then callable at 104.313
|
| Equity clawback: | 40% at 105.75 until July 15, 2020
|
| Trade date: | July 29
|
| Settlement date: | July 14
|
| Ratings: | Moody’s: B2
|
| S&P: BB-
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 5¾% to 6%
|
| Marketing: | Roadshow
|
|
|
|
|
© 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.
