Israel Chemicals accepts tenders for $600.15 million of 4½% notes

By Marisa Wong

Morgantown, W.Va., May 22 – Israel Chemicals Ltd. said it received tenders for $600,148,764 of its 4½% senior notes due 2024 as of 10 a.m. ET on May 22, the expiration of its previously announced tender offer.

No notes were tendered under guaranteed delivery procedures, the company said.

The company accepted all of the tendered notes for purchase for a total consideration of $605,081,986.84, or $1,008.22 per $1,000 principal amount.

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.

As previously announced, no accrued interest will be payable in addition to the total consideration.

Settlement is slated for May 29, after which $199,851,236 of the original $800 million of notes will remain outstanding.

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 [its] ongoing liability management.”

The issuer plans to price new long-dated 20- to 30-year senior notes, as previously reported. Pricing is expected Wednesday. The company 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 20 7992 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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