By Lisa Kerner
Charlotte, N.C., July 13 – Stepan Co. completed a $100 million offering of 3.95% senior notes due 2027 on July 10.
Interest on the notes is payable semiannually, according to a form 8-K filed with the Securities and Exchange Commission.
Stepan may at any time and from time to time prepay all or a portion of the notes at 100% of the principal amount so prepaid, plus interest and a make-whole amount.
The notes have a make-whole call at Treasuries plus 50 basis points.
Stepan subsidiary Stepan Specialty Products, LLC guaranteed the company’s obligations under the notes and the note purchase agreement.
Proceeds will be used for capital expenditures and to pay off existing higher-cost debt according to normal payoff schedules, a news release stated.
“Once our long-term debt that is due in 2015 is paid off, over 60% of our remaining debt will be at rates less than 4%,” said vice president and chief financial officer Scott Beamer.
“The weighted average cost of our long-term debt in 2016 will be 4.4%, enabling us to continue to make investments that support our strategic initiatives,” he said.
Purchasers include Massachusetts Mutual Life Insurance Co., Banner Life Insurance Co., C.M. Life Insurance Co., MassMutual Asia Ltd., Prudential Insurance Co. of America, Farmers Insurance Exchange, Gibraltar Life Insurance Co., Ltd., Mid-Century Insurance Co., Physicians Mutual Insurance Co., Lincoln National Life Insurance Co., Guardian Life Insurance Co. of America and Connecticut General Life Insurance Co.
Northfield, Ill.-based Stepan makes specialty and intermediate chemicals.
| Issuer: | Stepan Co.
|
| Issue: | Senior notes
|
| Amount: | $100 million
|
| Coupon: | 3.95%
|
| Maturity: | July 10, 2027
|
| Price: | Par
|
| Yield: | 3.95%
|
| Call: | Make-whole call at Treasuries plus 50 bps
|
| Distribution: | Private placement
|
| Agent: | Merrill Lynch, Pierce, Fenner & Smith Inc.
|
| Purchasers: | Massachusetts Mutual Life Insurance Co., Banner Life Insurance Co., C.M. Life Insurance Co., MassMutual Asia Ltd., Prudential Insurance Co. of America, Farmers Insurance Exchange, Gibraltar Life Insurance Co., Ltd., Mid-Century Insurance Co., Physicians Mutual Insurance Co., Lincoln National Life Insurance Co., Guardian Life Insurance Co. of America and Connecticut General Life Insurance Co.
|
| Settlement date: July 10
|
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