By Paul A. Harris
Portland, Ore., March 16 – Kraton Polymers LLC and Kraton Polymers Capital Corp. relaunched $440 million of 10½% senior notes due April 15, 2023 (B3/CCC+) on Wednesday morning, according to a syndicate source.
The deal priced in the afternoon.
Although the dealer declined to disclose a specific price, traders and other market sources had the notes quoted in the low 90s late Wednesday afternoon.
It was trading with “a 91-handle,” a portfolio manager said, approximately 90 minutes after the Wednesday close on the East Coast of the United States.
The relaunch came more than two months after dealers converted $440 million of bridge loans into the notes at a reoffer price of 96.225 on Jan. 6.
A $425 million notes offering had earlier been abandoned due to market conditions following an investor roadshow.
The relaunch was marketed via a Wednesday morning conference call.
As with the earlier offer, the relaunch was led by bookrunners Credit Suisse Securities (USA) LLC, Nomura and Deutsche Bank Securities Inc.
The notes will become callable after Oct. 15, 2018 at 107.875 and feature a three-year 40% equity clawback at 110.5.
Proceeds from the financing were used to help fund the acquisition of Arizona Chemical Holdings Corp.
The issuers are subsidiaries of Kraton Performance Polymers, Inc., a Houston-based producer of engineered polymers and styrenic block copolymers
Arizona Chemical is a Jacksonville, Fla.-based specialty chemicals company.
| Issuers: | Kraton Polymers LLC, Kraton Polymers Capital Corp.
|
| Face amount: | $440 million
|
| Maturity: | April 15, 2023
|
| Securities: | Senior notes
|
| Bookrunners: | Credit Suisse Securities (USA) LLC, Nomura, Deutsche Bank Securities Inc.
|
| Coupon: | 10½%
|
| Ratings: | Moody's: B3
|
| Standard & Poor's: CCC+
|
| Relaunch date: | March 16
|
| Marketing: | Investor call
|
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