Ashland: Hercules begins tender offer for 6½% junior subordinated debt

By Tali Rackner

Norfolk, Va., Nov. 28 – Ashland Global Holdings Inc. said wholly owned subsidiary Hercules LLC launched a tender offer for any and all of its $282 million of 6½% series A junior subordinated deferrable interest debentures due 2029, including those currently held as components of Crests units.

The debentures were initially distributed as a component of Crests units. Each Crests unit consists of $1,000 principal amount of debentures and one warrant to purchase Ashland common stock, according to an 8-K filing with the Securities and Exchange Commission.

Debentures that are currently held as components of Crests units must be separated from the warrant components of those Crests units before the debentures may be tendered. Hercules is only offering to purchase debentures; it is not offering to purchase the Crests units or any warrants trading on a standalone basis.

The price payable for each $1,000 of notes accepted for purchase is $975.

Included in the total is an early tender premium of $20 per $1,000 principal amount that will only be paid to holders who tender their notes before 5 p.m. ET on Dec. 9 and do not withdraw.

In addition, holders will receive accrued interest up to but excluding the settlement date.

The tender offer expires at midnight ET on Dec. 23, unless extended or terminated.

Settlement for early tenders is expected to occur on Dec. 12, and final settlement is planned for Dec. 27.

The tender offer is subject to the satisfaction or waiver of certain conditions.

Deutsche Bank Securities Inc. (855 287-1922 or 212 250-7527) is the dealer manager with Global Bondholder Services Corp. (212 430-3774 for banks and brokers or 866 470-3800 toll-free) acting as information and tender agent.

Hercules LLC, formerly Hercules Inc., is based in Wilmington, Del., and manufactures and markets specialty chemicals. Based in Covington, Ky., Ashland Global Holdings is a specialty chemicals company serving customers in a range of consumer and industrial markets, including adhesives, architectural coatings, automotive, construction, energy, food and beverage, personal care and pharmaceutical.

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