By Cristal Cody
Eureka Springs, Ark., Sept. 6 – Cabot Corp. sold $250 million of 3.4% 10-year senior notes (Baa2/BBB) at 99.849 on Tuesday, according to a market source and a press release.
The notes priced with a spread of 187.5 basis points over Treasuries, on the tight side of guidance in 190 bps area.
J.P. Morgan Securities LLC, Citigroup Global Markets Inc. and Mizuho Securities USA Inc. were the bookrunners.
The notes may be redeemed via a make-whole call until three months before maturity and then will be callable at par, according to a 424B5 filing with the Securities and Exchange Commission.
Proceeds along with cash on hand will be used to redeem the company’s $300 million outstanding of 5% senior notes due Oct. 1, 2016.
The specialty chemicals and performance materials company is based in Boston.
| Issuer: | Cabot Corp.
|
| Amount: | $250 million
|
| Description: | Senior notes
|
| Maturity: | Sept. 15, 2026
|
| Bookrunners: | J.P. Morgan Securities LLC, Citigroup Global Markets Inc., Mizuho Securities USA Inc.
|
| Coupon: | 3.4%
|
| Price: | 99.849
|
| Spread: | Treasuries plus 187.5 bps
|
| Call feature: | Make-whole call until three months prior to maturity; thereafter at par
|
| Trade date: | Sept. 6
|
| Settlement date: | Sept. 15
|
| Ratings: | Moody’s: Baa2
|
| S&P: BBB
|
| Distribution: | SEC registered
|
| Price guidance: | Treasuries plus 190 bps area
|
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