New Issue: Hexion prices $450 million eight-year notes at par to yield 6 5/8%

By Paul A. Harris

Portland, Ore., March 5 - Hexion U.S. Finance Corp. priced a $450 million issue of eight-year first-priority senior secured notes (Ba3/B-/) at par to yield 6 5/8% on Monday, according to a syndicate source.

The yield printed on top of price talk that had tightened from earlier talk of 6¾% to 7%.

J.P. Morgan Securities LLC, Bank of America Merrill Lynch, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Morgan Stanley & Co. LLC and UBS Investment Bank were the bookrunners for the quick-to-market issue.

Hexion, a Columbus, Ohio-based thermoset resins company, plans to use the proceeds to repay its non-extended first-lien term loans.

Issuer:	Hexion U.S. Finance Corp.
Amount:	$450 million
Maturity:	April 15, 2020
Securities:	First-priority senior secured notes
Bookrunners:	J.P. Morgan Securities LLC, Bank of America Merrill Lynch, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Morgan Stanley & Co. LLC, UBS Investment Bank
Co-manager:	Apollo Global Securities
Coupon:	6 5/8%
Price:	Par
Yield:	6 5/8%
Spread:	505 bps
Call features:	Make-whole call at Treasuries plus 50 bps until April 15, 2015, then callable at 104.969
Equity clawback:	35% at 106.625 until April 15, 2015
Trade date:	March 5
Settlement date:	March 14
Ratings:	Moody's: Ba3
	Standard & Poor's: B-
Distribution:	Rule 144A and Regulation S with registration rights
Price talk:	6 5/8%, revised from earlier talk of 6¾% to 7%
Marketing:	Quick to market

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