Published on 5/20/2003 in the Prospect News High Yield Daily.
New Issue: Rhodia sells €1 billion equivalent in four par-priced tranches
By Paul A. Harris
St. Louis, May 20 - French specialty chemical firm Rhodia sold four high-yield tranches totaling the equivalent of €1 billion Tuesday, according to a syndicate source.
Goldman Sachs, Bear Stearns and BNP Paribas were joint bookrunners. Crédit Lyonnais, Banco Bilbao Vizcaya Argentaria SA, Fortis Bank, HSBC, Natexis Banques Populaires, SG Cowen and Tokyo-Mitsubishi were co-managers.
The company sold two tranches, euro- and dollar-denominated, of senior notes due June 1, 2010 (Ba2/BB).
The $200 million tranche priced at par to yield 7 5/8%. Price talk was 7 3/8%-7 5/8%.
The €200 million tranche also priced at par to yield 8%. Price talk was 37.5 basis points area behind the dollar notes.
Rhodia also sold euro and dollar-denominated tranches of senior subordinated notes due June 1, 2011 (Ba3/BB-).
The $385 million senior subordinated tranche priced at par to yield 8 7/8%. Price talk was 150 basis points area behind the dollar-denominated senior notes.
And Rhodia sold €300 million of senior subordinated paper at par to yield 9¼%. Price talk had the euro subordinated tranche coming 37.5 basis points area behind the dollar-denominated senior subordinated tranche.
Proceeds from the Rule 144A/Regulation S offering will be used to repay short-term debt and for general corporate purposes.
| Issuer: | Rhodia
|
| Amount: | €1 billion (equivalent)
|
| Bookrunners: | Goldman Sachs, Bear Stearns, BNP Paribas (joint)
|
| Co-managers: | Crédit Lyonnais, Banco Bilbao Vizcaya Argentaria SA, Fortis Bank, HSBC, Natexis Banques Populaires, SG Cowen, Tokyo-Mitsubishi
|
| Settlement date: | May 28, 2003
|
|
|
| Dollar senior tranche
|
| Amount: | $200 million
|
| Maturity: | June 1, 2010
|
| Coupon: | 7 5/8%
|
| Price: | Par
|
| Yield: | 7 5/8%
|
| Spread: | 415 basis points
|
| Call features: | Callable on June 1, 2007 at 103.813, 101.906, par on June 1, 2009 and thereafter
|
| Equity clawback: | Until June 1, 2006 for 35% at 107.625
|
| Ratings: | Moody's: Ba2
|
| Standard & Poor's: BB
|
| Price talk: | 7 3/8%-7 5/8%
|
|
|
| Euro senior tranche
|
| Amount: | €200 million
|
| Maturity: | June 1, 2010
|
| Coupon: | 8%
|
| Price: | Par
|
| Yield: | 8%
|
| Spread: | 462 basis points
|
| Call features: | Callable on June 1, 2007 at 104, 102, par on June 1, 2009 and thereafter
|
| Equity clawback: | Until June 1, 2006 for 35% at 108
|
| Ratings: | Moody's: Ba2
|
| Standard & Poor's: BB
|
| Price talk: | 37.5 basis points area behind the dollar notes
|
|
|
| Dollar senior subordinated tranche
|
| Amount: | $385 million
|
| Maturity: | June 1, 2011
|
| Coupon: | 8 7/8%
|
| Price: | Par
|
| Yield: | 8 7/8%
|
| Spread: | 541 basis points
|
| Call features: | Callable on June 1, 2007 at 104.438, 102.219, par on June 1, 2009 and thereafter
|
| Equity clawback: | Until June 1, 2006 for 35% at 108.875
|
| Ratings: | Moody's: Ba3
|
| Standard & Poor's: BB-
|
| Price talk: | 150 basis points area behind the dollar-denominated senior notes
|
|
|
| Euro senior subordinated tranche
|
| Amout: | €300 million
|
| Maturity: | June 1, 2011
|
| Coupon: | 9¼%
|
| Price: | Par
|
| Yield: | 9¼%
|
| Spread: | 571 basis points
|
| Call features: | Callable on June 1, 2007 at 104.625, 102.312, par on June 1, 2009 and thereafter
|
| Equity clawback: | Until June 1, 2006 for 35% at 109.25
|
| Ratings: | Moody's: Ba3
|
| Standard & Poor's: BB-
|
| Price talk: | 37.5 basis points area behind the dollar-denominated senior subordinated tranche
|
|
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