By Paul A. Harris
Portland, Ore., Oct. 9 – Eco Services Operations LLC and Eco Finance Corp. priced a $200 million issue of eight-year senior notes (Caa1/CCC+/) at par to yield 8½% on Thursday, according to a syndicate source.
The yield printed on top of yield talk.
Credit Suisse Securities (USA) LLC, Jefferies LLC and Citigroup Global Markets Inc. were the joint bookrunners.
Proceeds, in addition to a $555 million credit facility 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.
| Issuer: | Eco Services Operations LLC and Eco Finance Corp.
|
| Amount: | $200 million
|
| Maturity: | Nov. 1, 2022
|
| Securities: | Senior notes
|
| Bookrunners: | Credit Suisse Securities (USA) LLC, Jefferies LLC, Citigroup Global Markets Inc.
|
| Coupon: | 8½%
|
| Price: | Par
|
| Yield: | 8½%
|
| Spread: | 633 bps
|
| First call: | Nov. 1, 2017 at 104.25
|
| Equity clawback: | 40% at 108.5 until Nov. 1, 2017
|
| Trade date: | Oct. 9
|
| Settlement date: | Oct. 24
|
| Ratings: | Moody's: Caa1
|
| Standard & Poor's: CCC+
|
| Distribution: | Rule 144A for life
|
| Price talk: | 8½% area
|
| Marketing: | Roadshow
|
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