By Paul A. Harris
Portland, Ore., Oct. 19 – Polynt-Reichhold priced an upsized €1.35 billion equivalent of five-year senior secured notes (B1/BB-) in three tranches on Tuesday, according to market sources.
The overall deal size increased from €1.3 billion equivalent.
All three tranches came 12.5 basis points inside of official talk
The issuance included a single dollar-denominated tranche, an upsized $760 million of fixed-rate notes that priced at par to yield 5 3/8%. The tranche size increased from $750 million.
Post-break, the new 5 3/8% secured notes due November 2026 were 101 1/8 bid, 101¼ offered in active trading, according to a high-yield bond trader.
The deal also included an upsized €750 of euro-denominated notes in two tranches, increased from €700 million.
Those tranches came sized €325 million apiece, including fixed-rate notes that priced at par to yield 4 3/8% and floating-rate notes that priced with a 437.5 basis points spread to Euribor at par.
The overall offering was heard to be well oversubscribed.
JPMorgan was 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.
| Issuer: | Polynt-Reichhold
|
| Amount: | €1.35 billion equivalent, increased from €1.3 billion
|
| Maturity: | November 2026
|
| Securities: | Senior secured notes
|
| Lead: | JPMorgan
|
| Trade date: | Oct. 19
|
| Ratings: | Moody's: B1
|
| S&P: BB-
|
|
|
| Dollar notes
|
| Amount: | $760 million
|
| Coupon: | 5 3/8%
|
| Price: | Par
|
| Yield: | 5 3/8%
|
| Call protection: | Two years
|
| Price talk: | 5½% to 5¾% (initial talk high 5% area)
|
|
|
| Euro fixed-rate notes
|
| Amount: | €325 million
|
| Coupon: | 4 3/8%
|
| Price: | Par
|
| Yield: | 4 3/8%
|
| Call protection: | Two years
|
| Price talk: | 4½% to 4¾% (initial talk high 4% area)
|
|
|
| Euro floating-rate notes
|
| Amount: | €325 million
|
| Coupon: | Euribor plus 437.5 bps
|
| Libor floor: | 0%
|
| Price: | Par
|
| Call protection: | One year
|
| Price talk: | Euribor plus 450 bps to 475 bps (initial talk high 4% area)
|
|
|
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