Italmatch Chemicals starts roadshow for €700 million of secured fixed- and floating-rate notes

By Paul A. Harris

Portland, Ore., Jan. 23 – Italmatch Chemicals SpA began marketing a €700 million two-part offering of five-year senior secured notes (expected ratings B3/B/B) on Monday, according to a syndicate sources.

The deal includes fixed-rate notes, which become callable after two years at par plus 50% of the coupon.

The offering also includes floating-rate notes, which become callable after one year at 101. The floating-rate notes have no Euribor floor.

Tranche sizes remain to be determined.

The Rule 144A and Regulation S offering is scheduled to be marketed on a roadshow through Tuesday.

Joint global coordinator and joint physical bookrunner Goldman Sachs International will bill and deliver. BNP Paribas is also a joint global coordinator and joint physical bookrunner. Citigroup is a joint global coordinator and joint bookrunner. Credit Agricole CIB and UniCredit are joint bookrunners.

The Genoa, Italy-based chemical company expects to use the proceeds plus proceeds from its exchange notes and a capital contribution to redeem its existing notes, to repay amounts drawn under its revolver subject to completion of the acquisition of a stake in Italmatch by Dussur, the Saudi Arabian Industrial Investments Co., and to fund cash to the Italmatch balance sheet.

Dussur announced in a December press release that it would acquire a stake in Italmatch from Bain Capital Private Equity. The size of Dussur's stake is expected to be less than 20%.

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