Published on 10/31/2006 in the Prospect News High Yield Daily.
New Issue: Huntsman International prices upsized $710 million equivalent two-part deal
By Paul A. Harris
St. Louis, Oct. 31 - Huntsman International LLC priced a massively upsized $710 million equivalent two-part offering of senior subordinated notes (B3/B) on Tuesday, according to market sources.
The Salt Lake City-based chemical company priced a €400 million tranche of seven-year notes at par to yield 6 7/8%. The seven-year notes, which have been issued via Rule 144A and Regulation S, priced in the middle of the 6¾% to 7% price talk.
The company also priced a $200 million tranche of eight-year notes at par to yield 7 7/8%. The eight-year notes were issued via Rule 144A with registration rights and also came in the middle of price talk of 7¾% to 8%.
Deutsche Bank Securities and Credit Suisse were joint bookrunners for the two-part deal, which was upsized from $400 million equivalent. The co-managers were Citigroup and Wachovia Securities.
Proceeds will be used to redeem part of the company's outstanding 10 1/8% senior subordinated notes due 2009.
| Issuer: | Huntsman International LLC
|
| Amount: | $710 million equivalent (upsized from $400 million equivalent)
|
| Security description: | Senior subordinated notes in two tranches
|
| Bookrunners: | Deutsche Bank Securities, Credit Suisse
|
| Co-managers: | Citigroup, Wachovia Securities
|
| Trade date: | Oct. 31
|
| Settlement date: | Nov. 13
|
| Ratings: | Moody's: B3
|
| Standard & Poor's: B
|
| Distribution: | Rule 144A/Regulation S
|
|
|
| Euro-denominated notes
|
| Amount: | €400 million
|
| Maturity: | Nov. 15, 2013
|
| Coupon: | 6 7/8%
|
| Price: | Par
|
| Yield: | 6 7/8%
|
| Call features: | Callable on Nov. 15, 2009 at 105.15, 103.438, par on and after Nov. 15, 2011
|
| Equity clawback: | Until Nov. 15, 2010 for 40%
|
| Distribution: | Rule 144A and Regulation S
|
| Price talk: | 6¾% to 7%
|
|
|
| Dollar-denominated notes
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| Amount: | $200 million
|
| Maturity: | Nov. 15, 2014
|
| Coupon: | 7 7/8%
|
| Price: | Par
|
| Yield: | 7 7/8%
|
| Call features: | Callable on Nov. 15, 2010 at 103.938, 101.969, par on and after Nov. 15, 2012
|
| Equity clawback: | Until Nov. 15, 2009 for 40%
|
| Distribution: | Rule 144A with registration rights
|
| Price talk: | 7¾% to 8%
|
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