Polynt sets talk in €1.3 billion equivalent three-part dollar, euro secured notes offering

By Paul A. Harris

Portland, Ore., Oct. 18 – Polynt-Reichhold set price talk in its €1.3 billion equivalent three-part offering of senior secured notes (B1/BB-) on Monday, according to market sources.

The deal includes $750 million of five-year fixed-rate notes with two years of call protection, talked at 5½% to 5¾%, versus initial guidance in the high 5% area.

Demand for the dollar-denominated tranche grew on Monday, according to a bond trader, who added that the word in the market had the dollar notes playing to as much as $2.1 billion of orders toward the middle of the afternoon.

The offering also includes €650 million of five-year notes in tranches of fixed-rate notes with two years of call protection, talked to yield 4½% to 4¾%, and floating-rate notes with one year of call protection, talked with a spread of 450 basis points to 475 bps over Euribor. Both had been in the market with initial guidance in the high 4% area.

Both the fixed-rate and floating-rate euro-denominated tranches will be sized at a minimum of €300 million. Final tranche sizes remain to be determined.

Pricing is expected on Tuesday.

JPMorgan is the lead.

Proceeds will be used to fund the acquisition of Polynt, a U.K.-based specialty chemicals manufacturer, by Black Diamond from Investindustrial and to refinance Polynt's capital structure.

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