OCI shifts proceeds to euro tranche, launches €400 million of notes at 3 5/8%, $400 million at 4 5/8%

By Paul A. Harris

Portland, Ore., Sept. 30 – OCI NV rejiggered tranche sizes and set final pricing in its two-part offering of five-year senior secured notes (Ba3/BB) on Wednesday, according to a market source.

The notes in an upsized €400 million tranche launched at 3 5/8%. The euro-denominated notes, upsized from €350 million, launched at the tight end of talk in the 3¾% area. Initial talk was 3¾% to 4%.

The notes in a downsized $400 million tranche launched at 4 5/8%. The dollar-denominated notes, downsized from $450 million, launched inside of the 4½% to 4¾% price talk. Initial talk was in the 5% area.

Final terms are expected later on Wednesday.

Sole physical bookrunner and global coordinator Barclays will bill and deliver. BofA and HSBC are global coordinators and bookrunners. BNP Paribas, Citigroup, Credit Agricole, Goldman Sachs, JPMorgan, Rabobank and SG are joint bookrunners.

The notes in both tranches become callable after two years at par plus 50% of the respective coupons.

The Netherlands-based producer and distributor of nitrogen products and methanol plans to use the proceeds, along with an approximately $300 million equivalent draw on its revolver, to redeem its dollar- and euro-denominated notes due 2023.

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