By Paul Deckelman
New York, Aug. 14 - Olin Corp. priced a $150 million offering of 8 78/% 10-year senior notes due Aug. 15, 2019 (Ba1/B) on Friday at 99.19 to yield 9%, high yield syndicate sources said.
The bonds came on top of pre-deal market price talk envisioning an 9% yield and a negligible original issue discount.
They will have call protection for the first five years after issue.
The bonds were sold via shelf registration statement on file with the Securities and Exchange Commission.
The deal, which was announced on Thursday, was brought to market via bookrunners Citigroup Global Markets Inc. and Bank of America Merrill Lynch. Wells Fargo Securities, LLC acted as co-manager on the deal.
Olin, a Clayton, Mo.-based manufacturer of chemicals and small-caliber ammunition for firearms, the latter sold under the iconic Winchester brand, said it is pursing the bond deal to strengthen its long-term liquidity "given uncertain economic times." It will also use part of the proceeds to pre-fund a debt maturity in 2011.
| Issuer: | Olin Corp.
|
| Security description: | Senior notes
|
| Amount: | $150 million
|
| Proceeds: | $144.16 million
|
| Maturity: | Aug. 15, 2019
|
| Bookrunner: | Citigroup Global Markets Inc. and Bank of America Merrill Lynch
|
| Co-managers: | Wells Fargo Securities, LLC
|
| Coupon: | 8 7/8%
|
| Price: | 99.19
|
| Yield: | 9%
|
| Spread: | 544 bps
|
| Call features: | Make-whole call at Treasuries plus 50 bps prior to Aug. 15, 2014, then callable at 104.438; callable Aug. 15, 2015 at 102.958; Aug. 15, 2016 at 101.479; and finally callable on or after Aug. 15, 2017 at par
|
| Equity clawback: | For up to 35% of issue at 108.875 until Aug. 15, 2012
|
| Trade date: | Aug. 14
|
| Settlement date: | Aug. 19
|
| Ratings: | Moody's: Ba1
|
| S&P: B
|
| Distribution: | Off shelf
|
| Price talk: | 9% with de minimis OID
|
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