Ashland Global starts capped tender offers for four series of notes

By Sarah Lizee

Olympia, Wash., Jan. 7 – Ashland Global Holdings Inc. launched a cash tender offer for up to $575 million of Ashland LLC’s $1,082,563,000 outstanding 4¾% senior notes due 2022 and waterfall cash tender offers for up to $250 million of Hercules LLC’s $3,858,000 of outstanding 6.6% debentures due 2027, Ashland LLC’s $373,365,000 of outstanding 6 7/8% senior notes due 2043 and Hercules’ $99,986,000 of outstanding 6½% junior subordinated debentures due 2029.

The tender offers will expire at 5 p.m. ET on Feb. 5, according to a press release.

If the aggregate purchase price, excluding accrued interest, of the 2022 notes tendered exceeds the cap, the company will accept tendered 2022 notes for purchase on a pro rata basis.

If the acceptance of all waterfall notes would result in an aggregate purchase price, excluding accrued interest, that exceeds the waterfall cap, those tenders will be subject to proration.

The total tender considerations are as follows, with the notes listed in order of acceptance priority level:

• $1,061 per $1,000 note for the 2022 notes;

• $1,010 per $1,000 note for the 2027 debentures;

• $1,190 per $1,000 note for the 2043 notes; and

• $1,080 per $1,000 note for the 2029 notes.

The total tender consideration for each series of notes includes an early tender premium of $30 per $1,000 note.

Holders must validly tender their existing notes at or before 5 p.m. ET on Jan. 21, 2020 to be eligible to receive the total consideration.

Holders will also receive accrued interest.

Early settlement is slated for Jan. 23, and settlement is Feb. 7.

Closing of the tender offers is subject to some conditions, including the completion of one or more debt issuances resulting in enough proceeds to fund the tender offers.

Citigroup Global Markets Inc. (800 558-3745 toll free or 212 723-6106 collect), Deutsche Bank Securities Inc. (855 287-1922 toll free or 212 250-7527 collect) and J.P. Morgan Securities LLC (866 834-4666 toll free or 212 834-2042 collect) are the dealer managers. Global Bondholder Services Corp. (212 430-3774 for banks and brokers or 866 470-3800 toll-free).

Ashland is a Covington, Ky.-based chemical company.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.