Hexion starts roadshow for $460 million five-year secured notes; whisper is high 10%-11% area

By Paul A. Harris

Portland, Ore., Jan. 19 – Hexion Inc. started a roadshow on Thursday for a $460 million offering of five-year first-priority senior secured notes, according to a market source.

Initial guidance has the deal coming with a yield in the high 10% to 11% area.

The offer is expected to price on Monday.

J.P. Morgan Securities LLC, Citigroup Global Markets Inc., BofA Merrill Lynch, Citizens Bank, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Goldman Sachs & Co. and Wells Fargo Securities LLC are the joint bookrunners for the Rule 144A and Regulation S offering.

The notes come with two years of call protection.

The issuing entity will be wholly owned subsidiary Hexion 2 U.S. Finance Corp.

The Columbus, Ohio-based producer of thermoset resins plans to use the proceeds to purchase or redeem a portion of its senior secured notes and for general corporate purposes.

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