New Issue: Georgia Gulf prices $500 million 9% seven-year notes to yield 9 1/8%

By Paul A. Harris

St. Louis, Dec. 11 - Georgia Gulf Corp. priced a $500 million issue of 9% seven-year senior secured first-lien notes (B3/B/) at 99.346 to yield 9 1/8% on Friday, according to an informed source.

The yield printed in the middle of the 9% to 9¼% yield talk. The issue price came rich to discount talk of 1 to 2 points.

J.P. Morgan Securities Inc. was the bookrunner. Wells Fargo Securities and Barclays Capital Inc. were the co-managers.

Proceeds will be used to repay debt.

The issuer is an Atlanta-based chemical company.

Issuer:	Georgia Gulf Corp.
Face amount:	$500 million
Proceeds:	$496.73 million
Maturity:	Jan. 15, 2017
Securities:	Senior secured first-lien notes
Bookrunner:	J.P. Morgan Securities Inc.
Co-managers:	Wells Fargo Securities, Barclays Capital Inc.
Coupon:	9%
Price:	99.346
Yield:	9 1/8%
Spread:	619 bps
Call features:	Make-whole call at Treasuries plus 50 bps until Jan. 15, 2014, then callable at 104.50, 102.25, par on and after Jan. 15, 2016
Equity clawback:	35% at 109.0 until Jan. 15, 2013
Change-of-control put:	101%
Trade date:	Dec. 11
Settlement date:	Dec. 22
Ratings:	Moody's: B3
	Standard & Poor's: B
Distribution:	Rule 144A/Regulation
Price talk:	9% to 9¼% with 1-2 points OID

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