Rhodia restructures €700 million deal into bullet, ups dollar-tranche talk to 10¾%-11%

By Paul A. Harris

St. Louis, May 6 - Rhodia restructured its upsized €700 million equivalent six-year senior notes offering (B3/CCC+) into a bullet transaction and revised price talk to 10¾% to 11% on the dollar tranche from the initial 10¼% to 10½%, a syndicate source said.

Previously the offering came with just four years of call protection.

A buyside source told Prospect News on Thursday that the dollar tranche has by far generated the most interest among investors.

A proposed euro tranche is talked at 25 basis points behind the dollar tranche.

Pricing is expected Friday morning New York time.

Credit Suisse First Boston, BNP Paribas and Goldman Sachs & Co. are joint bookrunners on the Rule 144A/Regulation S offering. Credit Lyonnais is joint lead manager.

Proceeds will be used to pay down bank debt and address medium-term liquidity issues.

The offering was increased from €625 million equivalent, with the additional amount of proceeds slated to fund the tender for the company's €500 million medium-term notes due 2005.

Rhodia is a specialty chemical company based in France.

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