By Andrea Heisinger
New York, Oct. 6 - RPM International Inc. sold an upsized $300 million of 6.125% 10-year senior unsecured notes on Tuesday at Treasuries plus 287.5 basis points, an informed source said.
The size was increased from $250 million. The notes came in at the tight end of guidance for a spread in the 300 bps area, with a margin of plus or minus 12.5 bps, the source said.
The notes (Baa3/BBB-/BBB-) priced at 99.895 to yield 6.139%. They have a make-whole redemption at Treasuries plus 45 bps and feature a change-of-control put at 101%.
Proceeds will be used to repay, redeem or refinance $163.7 million of notes due Oct. 15, and a portion of the $120 million in borrowings under an accounts receivable facility.
Bank of America Merrill Lynch and Wells Fargo Securities ran the books.
Co-managers were Fifth Third Securities, PNC Capital Markets, Credit Suisse Securities, KeyBanc Capital Markets, Mitsubishi UFJ Securities, UBS Securities and BNY Mellon Capital Markets.
The issuer produces specialty chemicals through its subsidiaries and is based in Medina, Ohio.
| Issuer: | RPM International Inc.
|
| Issue: | Senior unsecured notes
|
| Amount: | $300 million, increased from $250 million
|
| Maturity: | Oct. 15, 2019
|
| Bookrunners: | Bank of America Merrill Lynch, Wells Fargo Securities
|
| Co-managers: | Fifth Third Securities, PNC Capital Markets, Credit Suisse Securities, KeyBanc Capital Markets, Mitsubishi UFJ Securities, UBS Securities, BNY Mellon Capital Markets
|
| Coupon: | 6.125%
|
| Price: | 99.895
|
| Yield: | 6.139%
|
| Spread: | Treasuries plus 287.5 bps
|
| Call: | Make-whole at Treasuries plus 45 bps
|
| Change-of-control put: | 101%
|
| Trade date: | Oct. 6
|
| Settlement date: | Oct. 9
|
| Ratings: | Moody's: Baa3
|
| Standard & Poor's: BBB-
|
| Fitch: BBB-
|
| Price talk: | 300 bps area, plus or minus 12.5 bps
|
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