New Issue: Kraton sells upsized $250 million eight-year notes at par to yield 6¾%

By Paul A. Harris

Portland, Ore., Feb. 2 - Kraton Polymers LLC and Kraton Polymers Capital Corp. priced an upsized $250 million issue of eight-year senior notes (B2/B+/) at par to yield 6¾% on Wednesday, according to an informed source.

The yield printed at the tight end of the 6 7/8% area price talk.

Bank of America Merrill Lynch, Credit Suisse Securities, Goldman Sachs & Co., Morgan Stanley & Co. Inc. and Macquarie Capital were the joint bookrunners for the quick-to-market issue, which was upsized from $200 million.

Proceeds, together with the proceeds from the company's $200 million term loan A and available cash, will be used to refinance debt.

The issuer is a Houston-based chemical company.

Issuers:	Kraton Polymers LLC and Kraton Polymers Capital Corp.
Amount:	$250 million, increased from $200 million
Maturity:	March 1, 2019
Securities:	Senior notes
Bookrunners:	Bank of America Merrill Lynch, Credit Suisse Securities, Goldman Sachs & Co., Morgan Stanley & Co. Inc., Macquarie Capital
Coupon:	6¾%
Price:	Par
Yield:	6¾%
Spread:	368 bps
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:	Feb. 2
Settlement date:	Feb. 11
Ratings:	Moody's: B2
	Standard & Poor's: B+
Distribution:	Rule 144A and Regulation S with registration rights
Price talk:	6 7/8% area
Marketing:	Quick to market

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