By Lisa Kerner
Charlotte, N.C., Sept. 1 - Arch Chemicals, Inc. issued $75 million principal amount of series A senior unsecured notes to some affiliates of Prudential Investment Management, Inc. under a $150 million note purchase and private shelf agreement.
The notes mature in August 2016 and bear a fixed annual interest rate of 6.7%.
Under the agreement, Prudential's affiliates may purchase up to an additional $75 million principal amount of notes over the next three years. The terms have yet to be determined.
The proceeds of the issuance will be used primarily to pay down a portion of the company's revolving credit facility, an Arch Chemicals news release said.
"The notes balance our capital structure with longer term financing and provide additional liquidity well in advance of the maturity of our primary bank credit facilities in 2011," Arch Chemicals vice president and chief financial officer Steven C. Giuliano said in the release.
"This private placement of seven-year notes, which follows the completion earlier in the year of an unsecured $100 million term loan facility, further strengthens our balance sheet while providing us with added financial flexibility to support the long-term, profitable growth prospects in our core biocides businesses," Giuliano said.
Arch Chemicals is a Norwalk, Conn.-based biocides company.
| Issuer: | Arch Chemicals, Inc.
|
| Issue: | Series A senior unsecured notes
|
| Amount: | $75 million
|
| Maturity: | August 2016
|
| Coupon: | 6.7%
|
| Price: | Par
|
| Distribution: | Private placement
|
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