New Issue: Icahn Enterprises sells upsized $3.65 billion notes in three tranches

By Paul A. Harris

Portland, Ore., Jan. 8 - Icahn Enterprises LP and Icahn Enterprises Finance Corp. upsized their split-rated offering of notes (Ba3/BBB-/) to $3.65 billion from $3.5 billion and priced the notes in three tranches on Wednesday, according to a syndicate source.

All three tranches were priced at the tight ends and rich end of talk.

The transaction included a downsized $1,175,000,000 tranche of three-year notes, which priced at par to yield 3½%. The tranche was downsized from $1,225,000,000. The yield printed at the tight end of the 3½% to 3¾% yield talk.

The New York-based diversified holding company also priced an upsized $1,275,000,000 tranche of five-year notes at par to yield 4 7/8%. The tranche was upsized from $1,225,000,000. The yield printed at the tight end of yield talk that was set in the 5% area.

There was also an upsized $1.2 billion add-on to the issuer's existing 6% senior notes due Aug. 1, 2020, which priced at 102 to yield 5.574%. The add-on was upsized from $1.05 billion. The reoffer price came at the rich end of the 101.5 to 102 price talk.

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.

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

Issuers:	Icahn Enterprises LP and Icahn Enterprises Finance Corp.
Amount:	$3.65 billion, increased from $3.5 billion
Bill and deliver:	Citigroup Global Markets Inc.
Active bookrunners:	Citigroup, Credit Suisse Securities (USA) LLC, Morgan Stanley & Co. LLC
Passive bookrunners:	Jefferies LLC, UBS Investment Bank
Change-of-control put:	101%
Trade date:	Jan. 8
Settlement date:	Jan. 21
Ratings:	Moody's: Ba3
	Standard & Poor's: BBB-
Distribution:	Rule 144A and Regulation S with registration rights
Marketing:	Roadshow
Three-year notes
Amount:	$1,175,000,000, decreased from $1,225,000,000
Maturity:	March 15, 2017
Securities:	Senior notes
Coupon:	3½%
Price:	Par
Yield:	3½%
Call protection:	Callable at par one month prior to maturity
Price talk:	3½% to 3¾%
Five-year notes
Amount:	$1,275,000,000, increased from $1,225,000,000
Maturity:	March 15, 2019
Securities:	Senior notes
Coupon:	4 7/8%
Price:	Par
Yield:	4 7/8%
First call:	Jan. 15, 2017 at 102.438
Equity clawback:	35% at 104.875 until July 15, 2016
Price talk:	5% area
Add-on notes
Amount:	$1.2 billion, increased from $1.05 billion
Proceeds:	$1,224,000,000
Maturity:	Aug. 1, 2020
Security description:	Add-on to 6% senior notes due Aug. 1, 2020
Coupon:	6%
Price:	102
Yield to worst:	5.574%
First call:	Feb. 1, 2017 at 104.5
Equity clawback:	35% at 106 until Aug. 1, 2016
Price talk:	101.5 to 102

© 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.