By Paul A. Harris
Portland, Ore., June 18 – LSB Industries, Inc. priced a $35 million add-on to its 9 5/8% senior secured notes due May 1, 2023 (Caa1/CCC+) at 102.125 to yield 8.955% in a quick-to-market Tuesday trade, according to market sources.
The issue price came at the rich end of price talk in the 102 area and richer than the 101.5 to 102 initial guidance.
Goldman Sachs & Co. LLC was the bookrunner.
The Oklahoma City-based manufacturing, marketing and engineering company plans to use the proceeds to fund approximately $20 million of anticipated capital expenditures over the next 12 to 18 months, which may include product loading and unloading improvements, tank storage, capital to facilitate guest plant opportunities and efficiency projects. Remaining proceeds will be used for general corporate purposes.
| Issuer: | LSB Industries, Inc.
|
| Amount: | $35 million
|
| Maturity: | May 1, 2023
|
| Security description: | Add-on to 9 5/8% senior secured notes due May 1, 2023
|
| Bookrunner: | Goldman Sachs & Co. LLC
|
| Coupon: | 9 5/8%
|
| Price: | 102.125
|
| Yield to maturity: | 8.955%
|
| Spread: | 714 bps
|
| First call: | May 1, 2020 at 107.219
|
| Trade date: | June 18
|
| Settlement date: | June 21
|
| Ratings: | Moody's: Caa1
|
| S&P: CCC+
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 102 area
|
| Marketing: | Quick to market
|
| Original issue: | $400 million priced in April 2018
|
| Fungibility: | Add-on notes will become fungible with original notes
|
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