DuPont Performance Coatings sets roadshow for $1.4 billion equivalent dual-currency notes

By Paul A. Harris

Portland, Ore., Jan. 7 - DuPont Performance Coatings announced an international roadshow on Monday for about $1.4 billion equivalent of high-yield notes, according to a syndicate source.

The roadshow is set to run during the present week in Europe and during the Jan. 14 week in the United States.

The deal includes a €230 million offering of eight-year senior secured notes and a $1.1 billion offering of 8.25-year senior unsecured notes.

Credit Suisse, Deutsche Bank, Citigroup, Barclays, UBS, Morgan Stanley, Jefferies and SMBC are the joint bookrunners.

The notes in both Rule 144A and Regulation S for life tranches become callable in three years at par plus 75% of the coupon. However the senior secured notes feature a special call provision that allows the issuer to redeem up to 10% of those notes annually at 103 during the non-call period.

The notes in both tranches feature three-year 40% equity clawbacks and 101% poison puts.

The issuing entities are special purpose vehicles Flash Dutch 2 BV and U.S. Coatings Acquisition Inc.

Proceeds will be used to help fund Carlyle Group's acquisition of DuPont's performance coatings business.

DuPont Performance Coatings is a Wilmington, Del.-based supplier of vehicle and industrial coating systems.

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