Israel Chemicals prices tender offer for 4½% notes due 2024 at 100.822

By Susanna Moon

Chicago, May 21 – Israel Chemicals Ltd. set pricing on the tender offer for its $800 million of 4½% senior notes due 2024 that is set to run until 10 a.m. ET on May 22.

The purchase price was set at $1,008.22 for each $1,000 principal amount using a reference yield of 2.90358%, according to a 6-K filing with the Securities and Exchange Commission.

Pricing was set at 10 a.m. ET on May 21 using a yield to maturity of the 2.75% Treasury note due April 30, 2023 plus 145 basis points.

Holders also will receive accrued interest but to but excluding the payment date.

Tenders may be withdrawn at any time before the earlier of the end of the offer or if it is extended, the 10th business day after the beginning of the offer.

As announced May 14, the company was making the offer “in order to manage its overall funding level and optimize the maturity profile as part of ICL's ongoing liability management.”

The issuer plans to price new long-dated 20- to 30-year senior notes and selected banks and scheduled fixed-income investor meetings in Tel Aviv, London, New York and Boston that began on May 15, as reported by Prospect News on May 14.

The company said it plans to partially replace cash on hand or repay short-term borrowings and its revolving credit facility with the proceeds of the concurrent offering of new notes.

Barclays (800 438-3242 or 212 528-7581), BNP Paribas (+44 20 7595 8668, 888 210 4358 or 212 841 3059), Merrill Lynch International (+44 20 7996 5420, 888 292 0070, 980 387 3907 or DG.LM_EMEA@baml.com) and HSBC (+44 0 207 992 6237 or 212 525-5552) are the dealer managers. Lucid Issuer Services Ltd. (+44 20 7704 0880 or icl@lucid-is.com) is the information and tender agent. Israel Brokerage & Investments (+972 3 5190330 or David_V@IBI.co.il) is the Israeli tender agent.

Based in Tel Aviv, the issuer is a fertilizer and specialty chemicals company.

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