LSB Industries revises talk, structure for $400 million notes due 2019; pricing Wednesday

By Aleesia Forni

Virginia Beach, Va., July 31 - LSB Industries, Inc. has revised talk, timing and structure for its planned $400 million offering of senior notes (Ba3/B+), according to a market source.

The secured notes will mature in 2019, and yield is being talked in the area of 7¾%. Talk was previously set for an eight-year issue in the area of 6¾%. The deal was announced July 18 in an 8-K filing with the Securities and Exchange Commission.

Books close at 11:30 a.m. ET on Wednesday, and the deal is expected to price thereafter.

The notes will be callable in three years, and first call will be at par plus 50% of the coupon.

Wells Fargo Securities LLC is the left bookrunner for the Rule 144A and Regulation S with registration rights offer. BofA Merrill Lynch and J.P. Morgan Securities LLC are the joint bookrunners. Sterne Agee is the co-manager.

Proceeds will be used to repay the Oklahoma City-based diversified industrial company's secured term loan and for general corporate purposes.

LSB Industries is involved in the manufacturing and marketing of products in the chemical and climate control segments.

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