Hexion talks $825 million eight-year notes: fixed-rate at 9½% area, floaters at Libor plus 425 bps area

By Paul A. Harris

St. Louis, Oct. 25 - Hexion Specialty Chemicals Inc. issued price talk on its $825 million two-part offering of eight-year senior secured second-priority notes (B3/B-), which are expected to price by the end of the week, according to market sources.

The Columbus, Ohio-based maker of thermoset resins has talked its tranche of fixed-rate notes at the 9½% area and its tranche of floating-rate notes at the Libor plus 425 basis points area.

Tranche sizes remain to be determined.

Credit Suisse and JP Morgan are joint bookrunners.

Proceeds will be used to fund a debt recapitalization, including the payment of a dividend to sponsor Apollo Management.

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