Prince International kicks off $1.26 billion two-part notes offering backing Ferro acquisition

By Paul A. Harris

Portland, Ore., Jan. 28 – Prince International Corp. kicked off a $1.256 billion two-part offering of high-yield notes on Friday, according to market sources.

The Rule 144A and Regulation S for life deal includes a $500 million tranche of seven-year senior secured notes (B3/B-) with initial guidance in the mid-to-high 5% area, and $756 million of eight-year senior unsecured notes (Caa2/CCC+) with initial guidance in the low-8% area.

Marketing of the deal was set to commence on a Friday morning conference call with investors. A telephone roadshow is scheduled to run through Wednesday.

Left bookrunner Barclays will bill and deliver. Credit Suisse Securities (USA) LLC, Goldman Sachs & Co. LLC, Jefferies LLC, KeyBanc Capital Markets Inc., Deutsche Bank Securities Inc., HSBC Securities (USA) Inc. and BofA Securities Inc. are the joint bookrunners.

The notes in both tranches become callable after three years at par plus 50% of the respective coupons.

The issuing entity will be PMHC II, Inc., an affiliate of Prince International.

The Houston-based supplier of mineral-based products, engineered additives, and specialty coatings plans to use the proceeds to help fund its acquisition of Ferro Corp. and to repay debt.

The proceeds are to be escrowed pending the acquisition. There is a mandatory par call if the acquisition is not consummated by Aug. 11, 2022.

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