By Paul A. Harris
Portland, Ore., Jan. 6 – Lenders converted the Kraton Polymers LLC bridge loan into $440 million of 10½% senior notes due April 15, 2023 (B3/CCC+), according to an informed source.
The issue price was 96.225.
A $425 million offering of eight-year senior notes ran an early December roadshow just prior to the high-yield new issue market nearly freezing up due to volatility in the global capital markets, at which point the deal became hung up, sources say.
No official price talk was circulated; however, early guidance had the notes pricing in the mid-10% yield context.
Credit Suisse Securities (USA) LLC, Nomura and Deutsche Bank Securities Inc. led the financing.
The Houston-based producer of engineered polymers and styrenic block copolymers plans to use the proceeds to help finance the acquisition of Arizona Chemical Holdings Corp., Jacksonville, Fla.-based specialty chemicals company.
| Issuer: | Kraton Polymers LLC, Kraton Polymers Capital Corp.
|
| Face amount: | $440 million
|
| Proceeds: | $423.39 million
|
| Maturity: | April 15, 2023
|
| Securities: | Senior notes
|
| Bookrunners: | Credit Suisse Securities (USA) LLC, Nomura, Deutsche Bank Securities Inc.
|
| Coupon: | 10½%
|
| Price: | 96.225
|
| Ratings: | Moody's: B3
|
| Standard & Poor's: CCC+
|
| Distribution: | Rule 144A and Regulation S for life
|
| Marketing: | Early December roadshow
|
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