By Paul A. Harris
St. Louis, Dec. 11 - Kraton Polymers LLC/Capital Corp. downsized to $200 million from $230 million its offering of 10-year senior subordinated notes (B3/B) and priced the issue Thursday at par to yield 8 1/8%, a syndicate source said.
The notes, which mature Jan. 15, 2014, were talked to yield 8¼% to 8½%.
Goldman Sachs & Co. and UBS Investment Bank were bookrunners on the Rule 144A deal. The co-managers were Credit Suisse First Boston and Morgan Stanley.
The company shifted $30 million, the amount by which it downsized the bond deal, to its credit facility, according to the source.
Proceeds will be used to help fund the company's leveraged buyout by Texas Pacific Group from Ripplewood Holdings LLC.
Kraton Polymers is a Houston specialty chemicals company.
| Issuer: | Kraton Polymers LLC/Capital Corp.
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| Amount: | $200 million (decreased from $230)
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| Maturity: | Jan. 15, 2014
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| Security description: | Senior subordinated notes
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| Bookrunners: | Goldman Sachs & Co., UBS Investment Bank
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| Co-managers: | Credit Suisse First Boston, Morgan Stanley
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| Coupon: | 8 1/8%
|
| Price: | Par
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| Yield: | 8 1/8%
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| Spread: | 380 basis points
|
| Call features: | Callable after Jan. 15, 2009 at 104.063, 102.708, 101.354, par on Jan. 15, 2012 and thereafter
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| Equity clawback: | Until Jan. 15, 2007 for 35% at 108.125
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| Settlement date: | Dec. 23, 2003
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| Ratings: | Moody's: B3
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| Standard & Poor's: B
|
| Price talk: | 8 1/8% area (revised from 8¼%-8½%)
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