By Rebecca Melvin
Concord, N.H., April 22 – Equate Petrochemical BV priced $700 million of seven-year senior notes (expected ratings: Baa2/BBB/) at 99.898 to yield Treasuries plus 140 basis points, according to a market source.
Pricing was tightened from Treasuries plus 150 bps to 155 bps guidance and initial talk of Treasuries plus 170 bps area.
Equate Petrochemical Co. KSCC and Kuwait Olefins Co. KSCC are guarantors of the notes.
They are callable for a make-whole premium of Treasuries plus 25 bps and then callable at par three months prior to maturity.
Citigroup, J.P. Morgan, MUFG and NBK Capital are the global coordinators, joint lead managers and joint bookrunners of the Rule 144A and Regulation S deal. They are joined by BNP Paribas, HSBC, Mizuho Securities, SMBC Nikko and Standard Chartered Bank as joint lead managers and joint bookrunners.
Equate is an Ahmadi, Kuwait-based petrochemical company that is 85% owned by Petrochemical Industries Co. and Dow Chemical.
| Issuer: | Equate Petrochemical Co. KSCC
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| Guarantors: | Equate Petrochemical Co. KSCC and Kuwait Olefins Co. KSCC
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| Amount: | $700 million
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| Maturity: | Seven years
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| Description: | Notes
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| Bookrunners: | Citigroup, J.P. Morgan, MUFG, NBK Capital BNP Paribas, HSBC, Mizuho Securities, SMBC Nikko and Standard Chartered Bank
|
| Price: | 99.898
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| Spread: | 140 bps over Treasuries
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| Calls: Make-whole call at Treasuries plus 25 bps, then three-month par call
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| Trade date: | April 22
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| Settlement date: | Feb. 21
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| Distribution: | Rule 144A and Regulation S
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| Ratings: | Moody’s: Baa2
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| S&P:BBB
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| Price talk: | Guided to 150-155 bps over Treasuries from initial talk at 170 bps over Treasuries
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