SCIH Salt starts roadshow for $1.8 billion two-part notes in secured and unsecured tranches

By Paul A. Harris

Portland, Ore., April 12 – SCIH Salt Holdings, Inc. began a roadshow on Monday for $1.8 billion of high-yield notes in two tranches, according to market sources.

The deal, which is expected to price late in the April 12 week, features $1.1 billion of seven-year senior secured notes (B3/B) with initial talk in the low 5% area. BofA Securities Inc. is the left bookrunner.

The offering also features $700 million of eight-year senior unsecured notes (Caa2/CCC+) with initial talk in the high 6% area. Deutsche Bank Securities Inc. is the left bookrunner for the unsecured notes.

The notes in both tranches come with three years of call protection.

Proceeds, plus $993 million new cash from parent Stone Canyon and management affiliate MCD, will be used to fund the acquisition of Chicago-based salt producer Morton Salt, K+S AG's Americas salt business, as well as to retire a $200 million second-lien term loan and to add cash to the balance sheet.

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