Hexion talks $450 million eight-year notes to yield in 8% area; pricing Tuesday

By Paul A. Harris

Portland, Ore., June 25 – Hexion Inc. talked its $450 million offering of eight-year senior notes (Ba3/B-) to yield in the 8% area, according to market sources.

Official talk comes tight to the 8% to 8¼% early guidance.

Books close at 1:30 p.m. ET on Tuesday, and the deal is set to price thereafter.

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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