By Paul A. Harris
Portland, Ore., Feb. 5 – NOVA Chemicals Corp. priced a $650 million issue of six-year senior notes (Ba3/B+) at par to yield 9% in a Monday drive-by, according to market sources.
The yield printed at the wide end of the 8¾% to 9% yield talk. Initial guidance was in the high-8% to 9% area.
There were a lot of limit orders at 9%, according to a trader, who saw the new bonds trading at 99¾ bid, par 1/8 offered late Monday afternoon.
Some investors expected the bonds to trade well if they priced at the wide end of talk, but that does not appear to be the case, the trader said.
RBC was the lead on the offering.
The Calgary, Alta.-based manufacturer of chemicals and plastic resins plans to use the proceeds to fund a tender offer for its $650 million of outstanding 4 7/8% senior notes due 2024.
| Issuer: | NOVA Chemicals
|
| Amount: | $650 million
|
| Issue: | Senior notes
|
| Maturity: | Feb. 15, 2030
|
| Lead: | RBC
|
| Coupon: | 9%
|
| Price: | Par
|
| Yield: | 9%
|
| Spread: | 485.5 bps
|
| First call: | Aug. 15, 2026 at 104.5
|
| Trade date: | Feb. 5
|
| Settlement date: | Feb. 12
|
| Ratings: | Moody’s: Ba3
|
| S&P: B+
|
| Distribution: | Rule 144A and Regulation S
|
| Price talk: | 8¾% to 9%
|
| Marketing: | Drive-by
|
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