Rain CII sets price talk for $675 million equivalent two-part notes

By Paul A. Harris

Portland, Ore., Dec. 13 - Rain CII Carbon LLC and Rain CII Carbon Corp. set price talk for their $675 million equivalent two-part offering of eight-year senior secured second-lien notes (B1/BB-) on Thursday, according to a syndicate source.

A $400 million tranche is talked to price with a yield in the 8½% area.

A €210 million tranche is talked to price with a yield 12.5 basis points to 25 bps behind the dollar-denominated tranche.

The books are scheduled to close at the end of the day on Thursday, and the deal is set to price at noon ET on Friday.

Citigroup Global Markets Inc. is the left bookrunner. Goldman Sachs & Co. is the joint bookrunner. Wells Fargo Securities LLC is the co-manager.

The Rule 144A and Regulation S for life notes become callable in three years at par plus 75% of the coupon.

The notes feature a three year 35% equity clawback and a 101% poison put.

The Kingwood, Texas-based calcined petroleum coke producer plans to use the proceeds to partially fund the acquisition of Rutgers NV and repay some existing debt.

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