Published on 1/17/2013 in the Prospect News High Yield Daily.
New Issue: Georgia Gulf prices $450 million 10-year notes at par to yield 4 7/8%
By Paul A. Harris
Portland, Ore., Jan. 17 - Georgia Gulf Corp. priced a $450 million issue of senior notes due May 15, 2023 (Ba3/BB/) at par to yield 4 7/8% on Thursday, according to a syndicate source.
The yield printed at the tight end of price talk set at 25 basis points to 37.5 bps behind the new Eagle SpinCo 4 5/8% senior notes due Feb. 15, 2021, which also priced on Thursday (see related story in this issue).
Eagle SpinCo will become a subsidiary of Georgia Gulf.
Barclays was the lead left bookrunner. J.P. Morgan Securities LLC, RBC Capital Markets and Wells Fargo Securities LLC were the joint bookrunners.
The Atlanta-based chemical manufacturer will use the proceeds, together with cash on hand and/or revolver borrowings, to repurchase or redeem the existing Georgia Gulf 9% senior secured notes due 2017.
| Issuer: | Georgia Gulf Corp.
|
| Amount: | $450 million
|
| Maturity: | May 15, 2023
|
| Securities: | Senior notes
|
| Left bookrunner: | Barclays
|
| Joint bookrunners: | J.P. Morgan Securities LLC, RBC Capital Markets LLC, Wells Fargo Securities LLC
|
| Co-managers: | Houlihan Lokey Capital Inc., PNC Capital Markets LLC
|
| Coupon: | 4 7/8%
|
| Price: | Par
|
| Yield: | 4 7/8%
|
| Call features: | Make-whole call at Treasuries plus 50 bps until May 15, 2018, then callable at 102.438, 101.625, 100.813, par on and after May 15, 2021
|
| Equity clawback: | 35% at 104.875 until May 15, 2016
|
| Change-of-control put: | 101%
|
| Trade date: | Jan. 17
|
| Settlement date: | Feb. 1
|
| Ratings: | Moody's: Ba3
|
| Standard & Poor's: BB
|
| Distribution: | Rule 144A and Regulation S with registration rights
|
| Price talk: | 25 bps to 37.5 bps behind the new Eagle SpinCo 4 5/8% senior notes due Feb. 15, 2021, which also priced on Thursday
|
| Marketing: | Quick to market
|
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