By Paul A. Harris
St. Louis, Jan. 22 - Kerling plc priced €785 million of 10 5/8% seven-year first-lien senior secured notes (B3/B-/) at 99.393 to yield 10¾% on Friday, according to an informed source.
The yield printed at the tight end of the 10¾% to 11% price talk.
Barclays Capital and Bank of America Merrill Lynch were joint bookrunners.
The U.K.-based chemical company modified the deal's change-of-control language and covenants.
The change-of-control clause language was clarified to state that the acquisition of Kerling by Ineos Group or any of its subsidiaries triggers a 101% change of control.
Also the consolidated fixed charge coverage ratio was increased to 2.25 times from 2 times. And a limitation on liens was introduced, specifying that all ratio debt is to be incurred on an unsecured basis; i.e., no additional pari passu secured debt other than that provided for in the baskets.
Proceeds will be used to finance the acquisition of Ineos ChlorVinyls, to refinance debt related to the acquisition of Norsk Hydro's polymer business and to refinance Ineos ChlorVinyl's debt.
Kerling is the renamed parent of Ineos Norway.
| Issuer: | Kerling plc
|
| Amount: | €785 million
|
| Maturity: | Jan. 28, 2017
|
| Securities: | First-lien senior secured notes
|
| Bookrunners: | Barclays Capital, Bank of America Merrill Lynch
|
| Coupon: | 10 5/8%
|
| Price: | 99.393
|
| Yield: | 10¾%
|
| Spread: | 799 bps
|
| Call features: | Callable on Feb. 1, 2014 at 105.313, 102.656, par on and after Feb. 1, 2016
|
| Trade date: | Jan. 22
|
| Settlement date: | Jan. 28
|
| Expected ratings: | Moody's: B3
|
| Standard & Poor's: B-
|
| Distribution: | Rule 144A/Regulation S
|
| Price talk: | 10¾% to 11%
|
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