International Flavors talks $750 million three-year equity units to yield 6%-6.5%, up 17.5%-22.5%

By Abigail W. Adams

Portland, Me., Sept. 11 – International Flavors & Fragrances Inc. plans to price $750 million of three-year $50-par tangible equity units after the market close on Thursday with price talk for a coupon of 6% to 6.5% and an initial conversion premium of 17.5% to 22.5%, according to a market source.

Morgan Stanley & Co. LLC, Citigroup Global Markets Inc. and J.P. Morgan Securities LLC are the joint bookrunners for the registered offering, which carries a greenshoe of $75 million.

The tangible equity units will consist of a prepaid stock purchase contract and a senior amortizing note due September 2021. The units will be listed for trade on the New York Stock Exchange under the symbol “IFFT.”

The offering is being made concurrently with a $1.5 billion offering of common stock.

Proceeds from the combined offerings, in addition to borrowings under new term loans and cash on hand, will be used to finance the merger with Frutarom Industries Ltd.

International Flavors & Fragrances is a New York-based producer of flavors and fragrances for household products, cosmetics and food and beverages.

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