Cytec gets tenders for $290.5 million notes; Solvay wraps offer

By Susanna Moon

Chicago, Sept. 28 – Cytec Industries Inc. announced the results of the tender offer for its $400 million of 3.5% notes due 2023 and $250 million of 3.95% notes due 2025.

Meanwhile, parent company Solvay SA also ran a capped tender for its €500 million of 4.625% notes due 2018.

In its offer, Cytec plans to repurchase 51% of the senior bonds due 2023 for a total amount of $204 million and 34.6% of the senior bonds due 2025 for a total amount of $87 million, according to a notice from the issuer.

For the Cytec notes, the company accepted the following amounts with pricing set at 10 a.m. ET on Sept. 27 using a benchmark security rate:

• $203,984,000 of the 3.5% notes with pricing set at 104.111 based on a benchmark rate of 1.906%; and

• $86,505,000 of the 3.95% notes with pricing set at 103.537 based on a benchmark rate of 2.301%.

The purchase price for Cytec’s 3.5% notes was set using a spread of 75 basis points over the 1.625% Treasury due Aug. 31, 2022 and for the 3.95% notes using a 110 bps spread over the 2.25% Treasury due Aug. 15, 2027.

The tender for the Cytec notes ended at 5 p.m. ET the same day. Notes tendered under guaranteed delivery procedures must be received by 5 p.m. ET on Sept. 29.

Settlement is planned for Oct. 2.

In addition to the tender price, the company will pay accrued interest up to but excluding the settlement date.

In the offer for the 4.625% notes, Solvay had planned to buy an amount of the notes equal to €500 million less the euro equivalent of the principal amount of notes accepted for purchase by Cytec.

Investors tendered €247,554,726 of the 4.625% notes, and all of those notes were accepted for purchase, according to a separate notice.

The purchase price will be 103.627% using a fixed purchase yield of negative 0.3%.

Solvay will also pay accrued interest up to but excluding the settlement date.

The tender ended at 11 a.m. ET on Sept. 27, and settlement is planned for Oct. 2.

For both offers the dealer managers are BNP Paribas (+44 20 7595 8668, 212 841-3059 or liability.management@bnpparibas.com) and HSBC Securities (USA) Inc. (212 525-5552, +44 20 7992 6237, 888 472-2456 or liability.management@hsbcib.com). The tender agent is Citibank NA, London Branch (+44 20 7508 3867 or exchange.gats@citi.com).

The tender offers began Sept. 20.

Cytec is a specialty material and chemical company based in Woodland Park, N.J., and a subsidiary of Solvay, a Brussels-based chemical manufacturer.

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