By Paul A. Harris
Portland, Ore., Feb. 21 - Ashland Inc. priced a restructured $2.3 billion four-part offering of senior notes (Ba1/BB/) on Thursday, according to a market source.
A $600 million tranche of three-year notes priced at par to yield 3%, on top of yield talk.
A $700 million tranche of five-year notes priced at par to yield 3 7/8%. The yield printed at the tight end of the 3 7/8% to 4% yield talk.
A $650 million add-on to the 4¾% senior notes due Aug. 15, 2022 priced at 99.06 to yield 4 7/8%. The yield printed at the tight end of the 4 7/8% to 5% yield talk.
And a $350 million restructured tranche of 30-year notes priced at par to yield 6 7/8%. The yield printed at the tight end of the 6 7/8% to 7% yield talk. In a restructuring, the maturity of the long-dated notes was extended to 30 years from 12 years.
Citigroup Global Markets Inc. was the lead left bookrunner for the Rule 144A with registration rights deal, which is being run on the investment-grade desk.
BofA Merrill Lynch, Deutsche Bank Securities Inc., Scotia Capital and PNC Capital Markets were the joint bookrunners.
The Covington, Ky.-based specialty chemical company plans to use the proceeds to repay a substantial amount of its secured term loans A and B.
| Issuer: | Ashland Inc.
|
| Amount: | $2.3 billion
|
| Left bookrunner: | Citigroup Global Markets Inc.
|
| Joint bookrunners: | BofA Merrill Lynch, Deutsche Bank Securities Inc., Scotia Capital, PNC Capital Markets
|
| Co-managers: | J.P. Morgan Securities LLC, RBS Securities Inc., U.S. Bancorp, Credit Agricole CIB, Fifth Third Securities Inc., HSBC Securities (USA) LLC, Mitsubishi UFJ, Mizuho Securities, SMBC, SunTrust Robinson Humphrey Inc., Wells Fargo Securities LLC
|
| Trade date: | Feb. 21
|
| Settlement date: | Feb. 26
|
| Ratings: | Moody's: Ba1
|
| Standard & Poor's: BB
|
| Distribution: | Rule 144A with registration rights
|
| Marketing: | Quick to market
|
|
|
| Three-year notes
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| Amount: | $600 million
|
| Maturity: | March 15, 2016
|
| Securities: | Senior notes
|
| Coupon: | 3%
|
| Price: | Par
|
| Yield: | 3%
|
| Spread: | 260 bps
|
| Call protection: | Non-callable
|
| Price talk: | 3% area
|
|
|
| Five-year notes
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| Amount: | $700 million
|
| Maturity: | April 15, 2018
|
| Securities: | Senior notes
|
| Coupon: | 3 7/8%
|
| Price: | Par
|
| Yield: | 3 7/8%
|
| Spread: | 304 bps
|
| Call protection: | Non-callable
|
| Price talk: | 3 7/8% to 4%
|
|
|
| Add-on
|
| Face amount: | $650 million
|
| Proceeds: | $643.9 million
|
| Maturity: | Aug. 15, 2022
|
| Security description: | Add-on to 4¾% senior notes due Aug. 15, 2022
|
| Coupon: | 4¾%
|
| Price: | 99.06
|
| Yield: | 4 7/8%
|
| Spread: | 290 bps
|
| Call protection: | Non-callable
|
| Price talk: | 4 7/8% to 5%
|
| Original issue: | $500 million issue priced at par on Aug. 2, 2012
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| Total issue size: | $1.15 billion
|
|
|
| 30-year notes
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| Amount: | $350 million
|
| Maturity: | May 15, 2043 (maturity extended to 30 years from 12 years)
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| Coupon: | 6 7/8%
|
| Price: | Par
|
| Yield: | 6 7/8%
|
| Spread: | 370 bps
|
| Call protection: | Non-callable
|
| Price talk: | 6 7/8% to 7%
|
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