By Paul A. Harris
Portland, Ore., March 22 - Kemet Corp. priced an upsized $110 million fungible add-on to its 10½% senior notes due May 1, 2018 (B2/B+/) at 105.5 on Thursday, according to an informed source.
The reoffer price came at the cheap end of the 105.5 to 106 price talk.
The yield to worst is 8.864%.
Bank of America Merrill Lynch and Deutsche Bank Securities Inc. were the joint bookrunners for the quick-to-market add-on, which was upsized from $100 million.
The Greenville, S.C.-based capacitor manufacturer plans to use the proceeds to finance a portion of the acquisition of Niotan, to fund the initial payment of $50 million for a joint venture and for general corporate purposes.
The original $230 million issue priced at 98.685 to yield 10¾% in May 2010.
| Issuer: | Kemet Corp.
|
| Amount: | $110 million, increased from $100 million
|
| Maturity: | May 1, 2018
|
| Security description: | Add-on to 10½% senior notes due May 1, 2018
|
| Bookrunners: | Bank of America Merrill Lynch, Deutsche Bank Securities Inc.
|
| Coupon: | 10½%
|
| Price: | 105.5
|
| Yield to worst: | 8.864%
|
| Call protection: | Make-whole call at Treasuries plus 50 bps until May 1, 2014, then callable at 105.25
|
| Equity clawback: | 35% at 110.5 until May 1, 2013
|
| Trade date: | March 22
|
| Settlement date: | March 27
|
| Ratings: | Moody's: B2
|
| Standard & Poor's: B+
|
| Distribution: | Rule 144A and Regulation S
|
| Price talk: | 105.5 to 106
|
| Marketing: | Quick to market
|
| Original issue: | $230 million priced at 98.685 to yield 10¾% in May 2010
|
| Total issue size: | $340 million
|
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