By Cristal Cody
Tupelo, Miss., June 9 – Westlake Chemical Corp. priced $300 million of 3.375% 10-year senior notes (Baa2/BBB-/BBB) at 99.588 to yield 3.424%, or a spread of Treasuries plus 260 basis points, according to a market source and an FWP filing with the Securities and Exchange Commission.
Initial price talk was at the 325 bps over Treasuries area.
Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Wells Fargo Securities LLC, BofA Securities Inc., Deutsche Bank Securities Inc., Goldman Sachs & Co. LLC and PNC Capital Markets LLC were the bookrunners.
Proceeds will be used to purchase and retire all $100 million of the company's series 2009A revenue bonds due Aug. 1, 2029, purchase and retire all $89 million of its series 2010A-1 revenue bonds due Nov. 1, 2035 and purchase and retire all $65 million of its series 2010A-2 revenue bonds due Nov. 1, 2035.
Westlake is a Houston-based manufacturer and supplier of petrochemicals, polymers and building products.
| Issuer: | Westlake Chemical Corp.
|
| Amount: | $300 million
|
| Description: | Senior notes
|
| Maturity: | June 15, 2030
|
| Bookrunners: | Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Wells Fargo Securities LLC, BofA Securities Inc., Deutsche Bank Securities Inc., Goldman Sachs & Co. LLC and PNC Capital Markets LLC
|
| Coupon: | 3.375%
|
| Price: | 99.588
|
| Yield: | 3.424%
|
| Spread: | Treasuries plus 260 bps
|
| Call features: | Make-whole call at price equal to greater of par and Treasuries plus 40 bps before March 15, 2030; thereafter at par
|
| Trade date: | June 9
|
| Settlement date: | June 12
|
| Ratings: | Moody’s: Baa2
|
| S&P: BBB-
|
| Fitch: BBB
|
| Distribution: | SEC registered
|
| Price guidance: | Treasuries plus 325 bps area
|
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