By Paul A. Harris
St. Louis, May 7 - Rhodia SA priced an upsized two-tranche offering of about €725 million of six-year senior notes (B3/CCC+) in dollar and euro tranches on Friday, according to a syndicate source.
The French specialty chemical manufacturer sold $647.5 million of notes at 96.742 with a 10¼% coupon to yield 11%. The revised price talk was 10¾% to 11%, increased from 10¼% to 10½%.
The company also sold €181 million of notes at 96.765 with a 10½% coupon to yield 11¼%. Price talk was 25 basis points behind the dollar tranche.
Credit Suisse First Boston, BNP Paribas and Goldman Sachs & Co. ran the books on the Rule 144A/Regulation S issue, which has registration rights. Credit Lyonnais was joint lead manager. Natexis was co-manager.
Proceeds will be used to pay down bank debt, address medium-term liquidity issues and fund the tender for €500 million of the company's medium-term notes due 2005.
The issue was increased from €625 million equivalent.
| Issuer: | Rhodia SA
|
| Amount: | About €725 million equivalent, increased from €625 million equivalent
|
| Maturity: | June 1, 2010
|
| Bookrunners: | Credit Suisse First Boston, BNP Paribas, Goldman Sachs & Co.
|
| Joint lead manager: | Credit Lyonnais
|
| Co-manager: | Natexis
|
| Security description: | Senior notes
|
| Call features: | Non-callable for life
|
| Pricing date: | May 7
|
| Settlement date: | May 17
|
| Ratings: | Moody's: B3
|
| Standard & Poor's: CCC+
|
| Distribution: | Rule 144A and Regulation S with registration rights
|
|
|
| Dollar tranche
|
| Amount: | $647.5 million
|
| Coupon: | 10¼%
|
| Price: | 96.742
|
| Yield: | 11%
|
| Spread: | 667 basis points
|
| Equity clawback: | Until June 1, 2007 for 35% at 110.25
|
| Price talk: | 10¾%-11%, increased from 10¼%-10½%
|
|
|
| Euro tranche
|
| Amount: | €181 million
|
| Coupon: | 10½%
|
| Price: | 96.765
|
| Yield: | 11¼%
|
| Spread: | 752 basis points
|
| Equity clawback: | Until June 1, 2007 for 35% at 110.50
|
| Price talk: | 25 basis points behind dollar tranche
|
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