By Paul A. Harris
Portland, Ore., March 3 – LSB Industries, Inc. priced an upsized $200 million fungible add-on to its 6¼% senior secured notes due Oct. 15, 2028 (B2/B) at par to yield 6¼% in a Thursday drive-by, according to market sources.
The issue size increased from $175 million.
The issue price came at the rich end of both official price talk and initial guidance of 99.5 to par.
Jefferies LLC, Piper Sandler & Co. were the joint bookrunners.
The Oklahoma City-based industrial and agricultural chemicals producer plans to use the proceeds to pursue strategic acquisition opportunities, to fund organic growth and for general corporate purposes.
The incremental proceeds resulting from the $25 million upsize of the deal will be used to put cash on the balance sheet.
| Issuer: | LSB Industries, Inc.
|
| Amount: | $200 million, increased from $175 million
|
| Issue: | Add-on to senior secured notes
|
| Maturity: | Oct. 15, 2028
|
| Bookrunners: | Jefferies LLC and Piper Sandler & Co.
|
| Coupon: | 6¼%
|
| Price: | Par
|
| Yield: | 6¼%
|
| First call: | Oct. 15, 2024 at 103.125
|
| Trade date: | March 3
|
| Settlement date: | March 8
|
| Ratings: | Moody's: B2
|
| S&P: B
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 99.5 to par
|
| Marketing: | Drive-by
|
| Original issue: | $500 million priced in September 2021
|
| Fungibility: | Add-on notes will immediately become fungible with the original notes
|
| Total issue size: | $700 million
|
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