New Issue: Resolution Performance prices $25 million add-on at 104 to yield 8.167%

By Paul A. Harris

St. Louis, May 15 - Resolution Performance Products and RPP Capital Corp. priced a $25 million add-on to their 9½% senior secured second lien priority notes due April 15, 2010 (B2/B+) at 104 on Thursday to yield 8.617%, according to a syndicate source.

Morgan Stanley was the bookrunner for the Rule 144A deal. Co-managers were Citigroup, JP Morgan and Credit Suisse First Boston.

Proceeds will be used to repay bank debt.

The original $175 million priced on April 4 at par.

Issuer:	Resolution Performance Products, RPP Capital Corp.
Amount:	$25 million
Security description:	Add-on to 9½% senior secured second lien priority notes due 2010
Bookrunner:	Morgan Stanley
Co-managers:	Citigroup, JP Morgan, Credit Suisse First Boston
Maturity:	April 15, 2010
Coupon:	9½%
Price:	104
Yield:	8.617%
Spread:	565 basis points
Call features:	Callable on April 15, 2006 at 104.75, then at 103.167, 101.583, declining to par on April 15, 2009 and thereafter
Equity clawback:	Until April 15, 2006 for 35% at 109.50
Settlement date:	May 22, 2003 (T+5) with accrued interest
Ratings:	Moody's: B2
	Standard & Poor's: B+

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