Published on 3/15/2012 in the Prospect News High Yield Daily.
New Issue: Kraton Polymers sells $100 million tap of 6¾% notes due 2019 at 101.25 to yield 6.45%
By Paul A. Harris
Portland, Ore., March 15 - Kraton Polymers LLC and Kraton Polymers Capital Corp. priced a $100 million add-on to their 6¾% senior notes due March 1, 2019 (existing ratings B1/B+/) at 101.25 to yield 6.45% on Thursday, according to a syndicate source.
The reoffer price came at the rich end of the 101 to 101.25 price talk.
Bank of America Merrill Lynch, Credit Suisse Securities (USA) LLC, Goldman Sachs & Co., Macquarie Capital (USA) Inc. and Morgan Stanley & Co. LLC were the joint bookrunners for the quick-to-market add-on.
The Houston-based chemical company plans to use the proceeds for general corporate purpose, which may include funding for capital expenditures including, among other things, a portion of its proposed new manufacturing facility in Asia.
The original $250 million issue priced at par in February 2011.
| Issuer: | Kraton Polymers LLC and Kraton Polymers Capital Corp.
|
| Amount: | $100 million
|
| Maturity: | March 1, 2019
|
| Security description: | Add-on to 6¾% senior notes due March 1, 2019
|
| Bookrunners: | Bank of America Merrill Lynch, Credit Suisse Securities (USA) LLC, Goldman Sachs & Co., Macquarie Capital (USA) Inc., Morgan Stanley & Co. LLC
|
| Coupon: | 6¾%
|
| Price: | 101.25
|
| Yield: | 6.45%
|
| Call features: | Make-whole call at Treasuries plus 50 bps until March 1, 2015, then callable at 103.375, 101.688, par on and after March 1, 2017
|
| Equity clawback: | 35% at 106.75 until March 1, 2014
|
| Change-of-control put: | 101%
|
| Trade date: | March 15
|
| Settlement date: | March 20
|
| Existing ratings: | Moody's: B1
|
| Standard & Poor's: B+
|
| Distribution: | SEC registered
|
| Price talk: | 101 to 101.25
|
| Marketing: | Quick to market
|
| Original issue: | $250 million issue priced at par in February 2011
|
| Total issue size: | $350 million
|
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