Eco Services talks $200 million eight-year notes to yield in 8½% area; pricing Thursday

By Paul A. Harris

Portland, Ore., Oct. 8 – Eco Services Operations LLC and Eco Finance Corp. talked their $200 million offering of eight-year senior notes (Caa1/CCC+) to yield in the 8½% area, according to a syndicate source.

Books close at 11 a.m. ET on Thursday, and the Rule 144A for life deal is set to price thereafter.

Credit Suisse Securities (USA) LLC, Jefferies LLC and Citigroup Global Markets Inc. are the joint bookrunners.

The notes become callable after three years at par plus 50% of coupon and feature a three-year 40% equity clawback and a 101% poison put.

Proceeds, in addition to a $500 million term loan and an equity contribution from private equity sponsor CCMP Capital Advisors, will be used to fund the purchase of Solvay SA’s sulfuric acid business for $890 million.

Eco Services is a Cranbury, N.J.-based chemical company.

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