International Flavors plans to sell notes in three tranches

By Devika Patel

Knoxville, Tenn., Sept. 24 – International Flavors & Fragrances Inc. (Baa3/BBB) is expected to price fixed-rate senior notes in three tranches, according to a 424B5 filing with the Securities and Exchange Commission.

The notes feature a make-whole call and then a par call.

BNP Paribas Securities Corp., Citigroup Global Markets Inc., J.P. Morgan Securities LLC and Morgan Stanley & Co. LLC are the bookrunners.

Proceeds will be used to fund some of the consideration due in connection with a merger of a company subsidiary with Frutarom Industries Ltd. If the merger is not completed by Feb. 7, 2019, the company will redeem the senior notes.

The company’s credit ratings were lowered by Moody’s Investors Service and S&P Global Ratings on Sept. 13.

Moody’s said it dropped the ratings to Baa3 from Baa1 due to the company’s pending acquisition of Israel-based extracts producer Frutarom Industries.

S&P said it downgraded the company to BBB from BBB+ following its $2.25 billion equity offering to partially finance the $7 billion acquisition and the launch of marketing for the note offering.

The New York City-based company produces flavors and fragrances for use in products including cosmetics, detergents, household goods, foods and beverages.

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