Published on 9/20/2018 in the Prospect News High Yield Daily.
New Issue: AkzoNobel prices downsized €1 billion equivalent eight-year notes in two tranches
By Paul A. Harris
Portland, Ore., Sept. 20 – AkzoNobel NV sold a downsized €1 billion equivalent amount of eight-year senior notes (Caa1/B-/B-) in two tranches on Thursday, according to market sources.
The deal, which was downsized from €1,385,000,000, included a downsized $605 million tranche of Starfruit US Holdco LLC notes, which priced at par to yield 8%. The tranche size was decreased from €900 million equivalent.
The yield on the dollar tranche printed at the tight end of the 8% to 8¼% yield talk. Initial talk was in the 9% area. Sole physical bookrunner Barclays will bill and deliver for the dollar-denominated tranche.
The euro-denominated tranche featured a €485 million tranche of Starfruit Finco BV notes, which priced at par to yield 6½%, 12.5 basis points inside of yield talk in the 6¾% area and well inside of initial guidance in the high 6% area to 7%.
Physical bookrunner HSBC will bill and deliver for the euro-denominated tranche. Barclays and JPMorgan were also physical bookrunners for the euro notes.
Proceeds will be used to help fund the buyout of AkzoNobel Specialty Chemicals by the Carlyle Group and GIC from AkzoNobel for an enterprise value of €10.1 billion.
Closing is expected before year-end, subject to regulatory approvals and other customary conditions.
AkzoNobel Specialty is a specialty chemicals company.
| Company: | AkzoNobel NV
|
| Amount: | €1 billion equivalent, decreased from €1,385,000,000 equivalent
|
| Maturity: | Oct. 1, 2026
|
| Securities: | Senior notes
|
| Global coordinators: | Barclays, HSBC, JPMorgan
|
| Bookrunners: | Credit Suisse, Deutsche Bank, RBC, Morgan Stanley, Citigroup, Nomura, UBS, BNP Paribas, Credit Agricole, MUFG, Mizuho, NatWest, SG
|
| Co-managers: | ABN Amro, Commerz, Rabo, SEB
|
| Trade date: | Sept. 20
|
| Settlement date: | Oct. 1
|
| Ratings: | Moody's: Caa1
|
| S&P: B-
|
| Fitch: B-
|
| Distribution: | Rule 144A and Regulation S for life
|
| Marketing: | Roadshow
|
|
|
| Dollar-denominated notes
|
| Issuer: | Starfruit US Holdco LLC
|
| Amount: | $605 million, decreased from €900 million equivalent
|
| Coupon: | 8%
|
| Price: | Par
|
| Yield: | 8%
|
| Spread: | 494 bps
|
| First call: | Callable after three years at 104
|
| Price talk: | 8% to 8¼%
|
| Physical books: | Barclays (bill and deliver)
|
|
|
| Euro-denominated notes
|
| Issuer: | Starfruit Finco BV
|
| Amount: | €485 million
|
| Coupon: | 6½%
|
| Price: | Par
|
| Yield: | 6½%
|
| Spread: | 625 bps
|
| First call: | Callable after three years at 103.25
|
| Price talk: | 6¾% area
|
| Physical books: | HSBC (bill and deliver), Barclays, JPMorgan
|
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