By Paul A. Harris
St. Louis, April 21 - Kemet Corp. priced a $230 million issue of 10½% eight-year senior notes (B1/B/) at 98.685 to yield 10¾% on Wednesday, according to an informed source.
The yield printed on top of price talk.
Bank of America Merrill Lynch ran the books. Co-managers were KeyBanc Capital Markets Inc. and UBS Investment Bank.
Proceeds will be used to repay substantially all outstanding debt under the company's existing credit facilities and to fund a tender for a portion of its 2¼% convertibles due 2026.
The Greenville, S.C.-based manufacturer of capacitors postponed a $275 million offering of eight-year senior notes on Feb. 11, 2010 due to unfavorable market conditions.
| Issuer: | Kemet Corp.
|
| Face amount: | $230 million
|
| Proceeds: | $226,976,000
|
| Maturity: | May 1, 2018
|
| Securities: | Senior notes
|
| Bookrunner: | Bank of America Merrill Lynch
|
| Co-managers: | KeyBanc Capital Markets Inc., UBS Investment Bank
|
| Coupon: | 10½%
|
| Price: | 98.685
|
| Yield: | 10¾%
|
| Spread: | 735 bps
|
| Call protection: | Make-whole call at Treasuries plus 50 bps until May 1, 2014, then callable at a premium
|
| Equity clawback: | 35% at 110.50 until May 1, 2013
|
| Trade date: | April 21
|
| Settlement date: | May 5
|
| Ratings: | Moody's: B1
|
| Standard & Poor's: B
|
| Distribution: | Rule 144A with registration rights
|
| Price talk: | 10¾% area
|
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