By Paul A. Harris
Portland, Ore., July 27 – Avient Corp. priced a $725 million issue of eight-year senior notes (Ba3/BB-) at par to yield 7 1/8% on Wednesday, according to market sources.
The yield printed 12.5 basis points tighter than the 7¼% to 7½% yield talk. Initial talk was in the 7½% area. The deal was pre-marketed in the high-7% area.
It was a total blowout, sources said.
The $725 million offering played to reverse inquiry that was 1.5-times deal-size, with the order book five-times oversubscribed on Wednesday morning, sources said.
Timing was accelerated.
When it was announced on Tuesday the deal, which came in support of Avient's acquisition of Royal DSM’s Dyneema protective materials business, had been expected to remain in the market until Friday.
J.P. Morgan Securities LLC and Morgan Stanley & Co. LLC were the joint bookrunners.
The Avon Lake, Ohio-based specialized polymer materials manufacturer intends the proceeds plus a $500 million term loan and balance sheet cash to support its acquisition of all of the equity interests in DSM Protective Materials International BV, DSM Protective Materials BV, and DSM Protective Materials LLC from Koninklijke DSM NV (Royal DSM).
The notes feature a special mandatory redemption at par if the acquisition is terminated or if it is not consummated on or prior to April 19, 2023.
Upon acquiring the color masterbatch businesses of Clariant and Clariant Chemicals India Ltd. in July 2020 PolyOne Corp. changed its name to Avient.
| Issuer: | Avient Corp.
|
| Amount: | $725 million
|
| Issue: | Senior notes
|
| Maturity: | Aug. 1, 2030
|
| Joint bookrunners: | J.P. Morgan Securities LLC and Morgan Stanley & Co. LLC
|
| Co-managers: | BNP Paribas Securities Corp., Deutsche Bank Securities Inc., Goldman Sachs & Co. LLC, PNC Capital Markets LLC and U.S. Bancorp Investments Inc.
|
| Coupon: | 7 1/8%
|
| Price: | Par
|
| Yield: | 7 1/8%
|
| Spread: | 436 bps
|
| First call: | Aug. 1, 2025 at 103.563
|
| Trade date: | July 27
|
| Settlement date: | Aug. 10
|
| Ratings: | Moody's: Ba3
|
| S&P: BB-
|
| Distribution: | Rule 144A and Regulation S
|
| Price talk: | 7¼% to 7½%
|
| Marketing: | Roadshow
|
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