By Paul A. Harris
Portland, Ore., Jan. 16 - DuPont Performance Coatings completed a dual-currency high-yield notes transaction backing the leveraged buyout of the company, a syndicate source said on Wednesday.
The transaction included an upsized €250 million issue of senior secured notes due Feb. 1, 2021 (B1/B+), which priced at par to yield 5¾%.
The yield printed on top of yield talk, which had been revised from earlier talk in the 5 7/8% area. The secured notes tranche was upsized from €230 million.
DuPont also priced a downsized $750 million issue of senior unsecured notes due May 1, 2021 (Caa1/B-) at par to yield 7 3/8%.
The yield printed on top of yield talk that was revised from earlier talk of 7½% to 7¾%. The unsecured tranche was downsized from $1.1 billion.
Credit Suisse Securities (USA) LLC, Barclays, Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Morgan Stanley & Co. LLC, UBS Securities LLC, Jefferies & Co. Inc. and SMBC Nikko Capital Markets Ltd. were the joint bookrunners.
Both tranches will be callable in three years at par plus 75% of the coupon.
Up to 10% of the senior secured notes may be redeemed annually at 103 during the non-call period.
Proceeds will be used to help fund Carlyle Group's acquisition of DuPont's performance coatings business.
DuPont is a Wilmington, Del.-based supplier of vehicle and industrial coating systems.
| Issuers: | U.S. Coatings Acquisition Inc. and Flash Dutch 2 BV (DuPont Performance Coatings)
|
| Bookrunners: | Credit Suisse Securities (USA) LLC, Barclays, Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Morgan Stanley & Co. LLC, UBS Securities LLC, Jefferies & Co. Inc., SMBC Nikko Capital Markets Ltd.
|
| Trade date: | Jan. 16
|
| Settlement date: | Feb. 1
|
| Distribution: | Rule 144A and Regulation S for life
|
| Marketing: | Roadshow
|
|
|
| Senior secured notes
|
| Amount: | €250 million, increased from €230 million
|
| Maturity: | Feb. 1, 2021
|
| Coupon: | 5¾%
|
| Price: | Par
|
| Yield: | 5¾%
|
| Spread: | 485 bps
|
| First call: | Feb. 1, 2016 at 104.313
|
| Special call: | Issuer may redeem up to 10% of the secured notes annually at 103 during the non-call period
|
| Ratings: | Moody's: B1
|
| Standard & Poor's: B+
|
| Price talk: | 5¾%, revised from 5 7/8% area
|
|
|
| Senior unsecured notes
|
| Amount: | $750 million, decreased from $1.1 billion
|
| Maturity: | May 1, 2021
|
| Coupon: | 7 3/8%
|
| Price: | Par
|
| Yield: | 7 3/8%
|
| Spread: | 589 bps
|
| First call: | Feb. 1, 2016 at 105.531
|
| Equity clawback: | 40% at 107.375 until Feb. 1, 2016
|
| Ratings: | Moody's: Caa1
|
| Standard & Poor's: B-
|
| Price talk: | 7 3/8%, revised from 7½% to 7¾%
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
