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Italmatch sets initial talk in €700 million two-part secured notes offering; pricing Thursday
By Paul A. Harris
Portland, Ore., Jan. 25 – Italmatch Chemicals SpA circulated initial price talk on its €700 million two-part offering of five-year senior secured notes (B3/B/B) on Wednesday, according to market sources.
The deal includes fixed-rate notes, which become callable after two years at par plus 50% of the coupon, with initial talk in the 10½% area, tight to earlier whispers of 11%.
The offering also includes floating-rate notes, which become callable after one year at 101, with initial talk setting a 550 basis points spread to Euribor, with no Euribor floor, at an original issue discount of 92 to 93. Early whispers had the floater coming with a 575 bps spread at 92 to yield 10¾%.
Tranche sizes remain to be determined.
The Rule 144A and Regulation S offering is expected to price on Thursday.
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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