RPM International paid down revolver debt in Q3 using bond proceeds

By Devika Patel

Knoxville, Tenn., April 4 – RPM International Inc. paid down some revolving credit facility debt with bond proceeds last quarter.

“During the quarter, we issued $350 million in bonds and used the proceeds to pay down a portion of outstanding borrowings on our revolving credit facility and for general corporate purposes,” senior director of financial reporting Kristine Schulze said Thursday on the company’s earnings conference call for the fiscal third quarter ended Feb. 28.

As of Feb. 28, RPM’s total liquidity, including cash and long-term committed available credit, was $1.2 billion.

Cash and cash equivalents were $195.17 million as of Feb. 28, 2019, compared with $264.39 million as of Feb. 28, 2018.

Total debt at the end of the third quarter of fiscal 2019 was $2.52 billion, compared with $2.18 billion a year ago.

On Feb. 25, RPM priced $350 million of 4.55% 10-year notes (Baa3/BBB/BBB) at 99.856 to yield 4.568%, or a spread of 190 basis points over Treasuries. The notes settled Feb. 27.

The notes priced on the tight side of guidance in the Treasuries plus 195 bps area. Initial talk was in the Treasuries plus 212.5 bps area.

BofA Merrill Lynch, Santander Investment Securities Inc. and Wells Fargo Securities LLC were the bookrunners.

RPM is a Medina, Ohio-based company that manufactures and markets specialty chemical products for industrial and consumer markets.

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