Nalco files for $800 million IPO, to use part of proceeds to redeem discount notes

New York, Aug. 26 - Nalco Holding Co. filed a registration statement for an $800 million initial public offering of common stock with the Securities and Exchange Commission Thursday and said it plans to use part of the proceeds to redeem some of the senior discount notes issued by its Nalco Finance Holdings LLC and Nalco Finance Holdings Inc. subsidiaries.

The Naperville, Ill., provider of water treatment services, chemicals and equipment did not specify how much of the proceeds will be used to redeem the notes although indicative figures put the amount at $162.3 million accreted value. There are currently $467.6 million of the discount notes outstanding.

The Nalco subsidiaries priced $694 million face amount, $445.8 million proceeds of the discount notes on Jan. 15, 2004 to yield 9%.

Part of the money raised will also be used to pay a dividend and the remainder will be used for general corporate purposes, according to the S-1 filing. The dividend will be paid to Nalco LLC, which is owned by management and the company's equity sponsors, The Blackstone Group, Apollo Management, LP and GS Capital Partners 2000 LP.

Goldman, Sachs & Co., Citigroup, JPMorgan and UBS Investment Bank were named as underwriters for the stock offering, with Goldman Sachs on the left.

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