By Rebecca Melvin and Cristal Cody
Concord, N.H., May 11 – Albemarle Corp. sold $1.7 billion of senior notes (Baa3/BBB/BBB) in three parts on Tuesday, according to an FWP filed with the Securities and Exchange Commission and additional details from a market source.
The sale included $650 million of 4.65% five-year notes priced at 99.908 to yield 4.67% and a spread of 175 basis points over Treasuries. Price talk was in the 185 bps area over Treasuries.
A $600 million tranche of 5.05% notes due 2032 priced at 99.708 to yield 5.087%, or Treasuries plus 210 bps, versus talk in the 220 bps area.
And, a $450 million tranche of 5.65% 30-year bonds sold at 99.623 to yield 5.676%, or Treasuries plus 255 bps. Price talk was in the Treasuries plus 260 bps area.
The notes feature make-whole calls, followed by a par calls, and they are putable upon a change-of-control triggering event at 101 plus accrued interest.
The 2027 notes are callable for a make-whole premium of Treasuries plus 30 bps until May 1, 2027, then they are callable at par; the 2032 notes are callable for a make-whole premium of Treasuries plus 35 bps until May 1, 2027, and then callable at par, and the 2052 notes are callable for a make-whole premium of Treasuries plus 40 bps until Dec. 1, 2051, and then callable at par.
BofA Securities Inc., J.P. Morgan Securities LLC, Mizuho Securities USA LLC, MUFG, HSBC Securities (USA) Inc. and U.S. Bancorp Investments Inc. are the bookrunners.
Proceeds will be used to fund the redemption of Albermarle’s outstanding 2024 notes, which were issued in 2014 and of which $425 million aggregate principal amount is outstanding, with any remaining proceeds being used for general corporate purposes.
The specialty chemical company is based in Baton Rouge, La.
| Issuer: | Albemarle Corp.
|
| Amount: | $1.7 billion
|
| Issue: | Senior notes
|
| Bookrunners: | BofA Securities Inc., J.P. Morgan Securities LLC, Mizuho Securities USA LLC, MUFG, HSBC Securities (USA) Inc. and U.S. Bancorp Investments Inc.
|
| Senior co-managers: | Santander Investment Securities Inc., Truist Securities Inc. and Goldman Sachs & Co. LLC
|
| Co-manager: | Siebert Williams Shank & Co. LLC
|
| Trustee: | U.S. Bank Trust Co., NA
|
| Counsel to issuer: | K&L Gates LLP and Troutman Pepper Hamilton Sanders LLC
|
| Counsel to underwriters: | Cravath, Swaine & Moore LLP
|
| Change-of-control put: | At 101
|
| Trade date: | May 10
|
| Settlement date: | May 13
|
| Ratings: | Moody’s: Baa3
|
| S&P: BBB
|
| Fitch: BBB
|
| Distribution: | SEC registered
|
|
|
| Five-year notes
|
| Amount: | $650 million
|
| Maturity: | June 1, 2027
|
| Coupon: | 4.65%
|
| Price: | 99.908
|
| Yield: | 4.67%
|
| Spread: | 175 bps over Treasuries
|
| Call: | Treasuries plus 30 bps prior to May 1, 2027, then callable at par
|
| Price talk: | 185 bps area over Treasuries
|
| Cusip: | 012653AD3
|
|
|
| 10-year notes
|
| Amount: | $600 million
|
| Maturity: | June 1, 2032
|
| Coupon: | 5.05%
|
| Price: | 99.708
|
| Yield: | 5.087%
|
| Spread: | 210 bps over Treasuries
|
| Call: | Treasuries plus 35 bps prior to May 1, 2027, then callable at par
|
| Price talk: | 220 bps area over Treasuries
|
| Cusip: | 012653AE1
|
|
|
| 30-year bonds
|
| Amount: | $450 million
|
| Maturity: | June 1, 2052
|
| Coupon: | 5.65%
|
| Price: | 99.623
|
| Yield: | 5.676%
|
| Spread: | 255 bps over Treasuries
|
| Call: | Treasuries plus 40 bps prior to Dec. 1, 2051, then callable at par
|
| Price talk: | 260 bps area over Treasuries
|
| Cusip: | 012653AF8
|
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