By Cristal Cody
Chicago, Aug. 5 – Westlake Chemical Corp. sells $1.7 billion of senior notes with maturities in 2024, 2041, 2051 and 2061, according to a 424B5 filing with the Securities and Exchange Commission on Thursday.
The $300 million notes due Aug. 15, 2024 priced with a 0.875% coupon at 99.853 to yield 0.925%. The spread was Treasuries plus 55 basis points, low to talk in the 87.5 bps area, based on details from a source.
The $350 million 20-year notes were sold with a 2.875% coupon at 97.969 to yield 3.011%, or at a spread of Treasuries plus 125 bps, roughly 20 points lower than spread talk in the Treasuries plus 145 bps area.
The $600 million 30-year notes came with a 3.125% coupon, priced at 97.261% to yield 3.269%. The spread is Treasuries plus 140 bps, approximately 15 bps lower than talk in the 155 bps area.
And, the $450 million 40-year notes arrived with a 3.375% coupon, discounted to 96.922 to yield 3.519%. The spread was 165 bps over Treasuries, around 5 bps lower than talk in the 170 bps area.
The 2024 notes will come with two years of call protection and then a par call.
The other three series will be optionally redeemable by the issuer with a make-whole premium until six months before each maturity date, when the notes will be redeemable at par.
There is also a special mandatory redemption related to the Lasco Fittings, Inc. acquisition for the 2041 notes and the Boral acquisition for the 2051 and 2061 notes. If the acquisitions are not completed, the notes must be redeemed at 101.
Deutsche Bank Securities Inc., BofA Securities, Inc., Citigroup Global Markets Inc., J.P. Morgan Securities LLC and Wells Fargo Securities, LLC are underwriters for the offer.
PNC Capital Markets LLC, Goldman Sachs & Co. LLC and RBC Capital Markets, LLC were also listed as joint bookrunners.
Proceeds are going to be used for pending acquisitions.
Westlake is a manufacturer and supplier of petrochemicals, polymers and building products and is based in Houston.
| Issuer: | Westlake Chemical Corp.
|
| Issue: | Senior notes
|
| Amount: | $1.7 billion
|
| Bookrunners: | Deutsche Bank Securities Inc., BofA Securities, Inc., Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Wells Fargo Securities, LLC, PNC Capital Markets LLC, Goldman Sachs & Co. LLC and RBC Capital Markets, LLC
|
| Co-managers: | BMO Capital Markets Corp., Capital One Securities, Inc., Truist Securities, Inc. and UBS Securities LLC
|
| Trustee: | Bank of New York Mellon Trust Co., NA
|
| Counsel to issuer: | Baker Botts LLP
|
| Change of control: | At 101
|
| Trade date: | Aug. 5
|
| Settlement date: | Aug. 19
|
| Ratings: | Moody’s: Baa2
|
| S&P: BBB
|
| Fitch: BBB
|
| Distribution: | SEC registered
|
|
|
| 2024 notes
|
| Amount: | $300 million
|
| Maturity: | Aug. 15, 2024
|
| Coupon: | 0.875%
|
| Price: | 99.853
|
| Yield: | 0.925%
|
| Spread: | Treasuries plus 55 bps
|
| Call features: | Par call starting Aug. 15, 2022; otherwise non-callable
|
| Price talk: | Treasuries plus 87.5 bps area
|
| Cusip: | 960413AX0
|
|
|
| 2041 notes
|
| Amount: | $350 million
|
| Maturity: | Aug. 15, 2041
|
| Coupon: | 2.875%
|
| Price: | 97.969
|
| Yield: | 3.011%
|
| Spread: | Treasuries plus 125 bps
|
| Call features: | Make-whole call at Treasuries plus 20 bps until Feb. 15, 2041, then par call
|
| Special redemption: | At 101 if Lasco acquisition does not happen
|
| Price talk: | Treasuries plus 145 bps area
|
| Cusip: | 960413AY8
|
|
|
| 2051 notes
|
| Amount: | $600 million
|
| Maturity: | Aug. 15, 2051
|
| Coupon: | 3.125%
|
| Price: | 97.261
|
| Yield: | 3.269%
|
| Spread: | Treasuries plus 140 bps
|
| Call features: | Make-whole call at Treasuries plus 25 bps until Feb. 15, 2051, then par call
|
| Special redemption: | At 101 if Boral acquisition does not happen
|
| Price talk: | Treasuries plus 155 bps area
|
| Cusip: | 960413AZ5
|
|
|
| 2061 notes
|
| Amount: | $450 million
|
| Maturity: | Aug. 15, 2061
|
| Coupon: | 3.375%
|
| Price: | 96.922
|
| Yield: | 3.519%
|
| Spread: | Treasuries plus 165 bps
|
| Call features: | Make-whole call at Treasuries plus 25 bps until Feb. 15, 2061, then par call
|
| Special redemption: | At 101 if Boral acquisition does not happen
|
| Price talk: | Treasuries plus 170 bps area
|
| Cusip: | 960413BA9
|
|
|
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
