Hexion starts roadshow for $450 million eight-year notes supporting emergence from bankruptcy

By Paul A. Harris

Portland, Ore., June 19 – Hexion Inc. started a roadshow on Wednesday for a $450 million offering of eight-year senior notes (Ba3/B-), according to market sources.

An investor conference call was scheduled to get underway at 12:30 p.m. ET on Wednesday.

The initial price talk is 8% to 8¼%, a trader said.

The roadshow runs through Monday.

Credit Suisse Securities (USA) LLC is the left bookrunner for the Rule 144A and Regulation S offering. J.P. Morgan Securities LLC, Goldman Sachs & Co. LLC, Citigroup Global Markets Inc., Barclays, Deutsche Bank Securities Inc. and Blackstone Capital Markets are the joint bookrunners.

The notes come with three years of call protection and feature a three-year 40% equity clawback and a 101% poison put.

The Columbus, Ohio-based specialty chemicals company is using the proceeds to repay its debtor-in-possession credit facilities and other distributions provided for under its plan of reorganization, as well as to repay fees and expenses related to its emergence from bankruptcy.

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