Icahn Enterprises sets tranche sizes, price talk in $3.5 billion three-part offering of notes

By Paul A. Harris

Portland, Ore., Jan. 7 - Icahn Enterprises LP and Icahn Enterprises Finance Corp. set tranche sizes and price talk for their $3.5 billion three-part offering of senior notes (/BBB-/) on Tuesday afternoon, according to a syndicate source.

A $1,225,000,000 tranche of non-callable notes due March 15, 2017 is talked to yield 3½% to 3¾%.

A $1,225,000,000 tranche of notes due March 15, 2019 is talked to yield in the 5% area. The five-year notes come with 2.5 years of call protection.

A $1.05 billion add-on to the company's existing 6% notes due Aug. 1, 2020 is talked at a reoffer price of 101.5 to 102. The 6% notes become callable at 104.5 on Feb. 1, 2017. The original $500 million issue priced at par on July 29, 2013.

Books close at 2:30 p.m. ET on Wednesday, and the deal is set to price thereafter.

Active bookrunner Citigroup Global Markets Inc. will bill and deliver for the deal, which is being run jointly on the high-yield and investment-grade desks. Credit Suisse Securities (USA) LLC and Morgan Stanley & Co. LLC are also active bookrunners. Jefferies LLC and UBS Investment Bank are passive bookrunners.

The notes are formatted as Rule 144A and Regulation S with registration rights deals.

Proceeds, together with cash on hand, will be used to refinance the outstanding 7¾% notes due 2016 and the 8% notes due 2018.

The prospective issuer is a New York-based diversified holding 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.