By Paul A. Harris
Portland, Ore., Nov. 8 – Aruba Investments, Inc., which does business as Angus Chemical Co., priced a $200 million issue of Kobe US Midco 2, Inc. five-year pay-if-you-can PIK toggle holdco notes (Caa2/CCC/CCC) at 99 to yield 9.509% on Monday, market sources say.
The cash coupon is 9¼%, which steps up by 75 basis points to 10% for PIK payments.
The coupon came at the tight end of the 9¼% to 9½% coupon talk. The issue price came on top of price talk.
J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, Goldman Sachs & Co. LLC, BNP Paribas Securities Corp. and Jefferies LLC were the joint bookrunners.
The specialty chemical producer, which is based in Buffalo Grove, Ill., plans to use the proceeds plus $100 million of additional secured debt to fund a $300 million dividend to its shareholders.
| Issuer: | Kobe US Midco 2, Inc.
|
| Amount: | $200 million
|
| Maturity: | Nov. 1, 2026
|
| Securities | Pay-if-you-can senior PIK toggle holdco notes
|
| Bookrunners: | J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, Goldman Sachs & Co. LLC, BNP Paribas Securities Corp. and Jefferies LLC
|
| Cash coupon: | 9¼%
|
| PIK coupon: | 10%
|
| Price: | 99
|
| Cash yield: | 9.509%
|
| Spread: | 841 bps
|
| Call protection: | One year
|
| Trade date: | Nov. 8
|
| Ratings: | Moody's: Caa2
|
| S&P: CCC
|
| Fitch: CCC
|
| Distribution: | Rule 144A and Regulation S
|
| Price talk: | 9¼% to 9½% cash coupon at OID 99
|
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