By Paul A. Harris
St. Louis, Aug. 10 - Reichhold Industries, Inc. priced a $195 million issue of 9% eight-year senior notes (B2/BB-) at 98.608 to yield 9¼% on Thursday, according to an informed source.
The yield came 25 basis points beyond the wide end of the 8¾% to 9% price talk.
Banc of America Securities LLC and Wachovia Securities were joint bookrunners for the issue, which was transacted via Rule 144A and Regulation S.
Proceeds will be used to repay existing debt and pay a $20 million dividend to shareholders.
Reichhold is a Durham, N.C.-based supplier of unsaturated polyester resins for composite applications and resins and other polymers for coatings applications.
| Issuer: | Reichhold Industries, Inc.
|
| Amount: | $195 million
|
| Maturity: | Aug. 15, 2014
|
| Security description: | Senior notes
|
| Bookrunners: | Banc of America Securities LLC and Wachovia Securities
|
| Coupon: | 9%
|
| Price: | 98.608
|
| Yield: | 9¼%
|
| Spread: | 434 bps
|
| Call features: | Callable on and after Aug. 15, 2010 at 104.50, 102.25, par on and after Aug. 15, 2012
|
| Equity clawback: | Until Aug. 15, 2009 for 35% at 109.0
|
| Trade date: | Aug. 10
|
| Settlement date: | Aug. 15
|
| Ratings: | Moody's: B2
|
| Standard & Poor's: BB-
|
| Distribution: | Rule 144A and Regulation S
|
| Price talk: | 8¾%-9%
|
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