Aruba/Kobe Midco plans $200 million sale of pay-if-you-can PIK toggle notes backing dividend

By Paul A. Harris

Portland, Ore., Nov. 4 – Aruba Investments, Inc., which does business as Angus Chemical Co. is in the market with a pay-if-you-can PIK toggle holdco bond deal backing a shareholder dividend, market sources say.

Issuing entity Kobe US Midco 2, Inc. is offering $200 million of five-year senior pay-if-you-can PIK toggle notes (CCC).

J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, Goldman Sachs & Co. LLC, BNP Paribas Securities Corp. and Jefferies & Co. are the joint bookrunners.

The Rule 144A and Regulation S notes come with one year of call protection.

The specialty chemical producer, which is headquartered in Buffalo Grove, Ill., plans to use the proceed plus $100 million of additional secured debt to fund a $300 million dividend to its shareholders.

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