Equate Petrochemical launches benchmark two-part dollar notes

By Paul A. Harris

Portland, Ore., Oct. 27 – Kuwait’s Equate Petrochemical Co. KSCC launched its benchmark dollar-denominated two-part offering of notes on Thursday morning, according to a market source.

The notes in a proposed long five-year tranche launched at a 195 basis points spread to mid-swaps.

The proposed 10-year notes launched at mid-swaps plus 270 bps.

Final tranche size remain to be announced.

Books are closed.

The deal is playing to $5.5 billion of demand, the source said.

The launch spreads come inside of revised spread talk.

As reported, the long five-year notes, due in March 2022, were talked in the mid-swaps plus 212.5 bps area after initial talk in the low-200 bps area.

The 10-year notes were talked in the mid-swaps plus 287.5 bps area, following initial talk of a spread in the high-200 bps to 300 bps.

Citigroup, HSBC, JPMorgan and NBK Capital are the global coordinators and joint bookrunners. Banca IMI, Mizuho Securities, MUFG and SMBC Nikko are also joint bookrunners for the Rule 144A and Regulation S deal.

Equate is 85% owned by Petrochemical Industries Co. and Dow Chemical and produces essential chemical compounds as the largest petrochemical complex in Kuwait.

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