By Paul Deckelman
New York, Aug. 9 - Olin Corp. came to market on Thursday with a $200 million issue of 10-year notes (Ba1/B+), according to primaryside sources.
That rapidly marketed transaction was upsized from an originally announced $175 million and priced at par to yield 5½%. That print came at the narrow end of pre-deal market price talk of 5½% to 5¾%, the sources said.
The deal came to market via joint book-running managers Bank of America Merrill Lynch, Citigroup Global Markets Inc. and Wells Fargo Securities, LLC.
The paper is being sold via an offering registered with the Securities and Exchange Commission.
The notes are not callable other than via a make-whole call at 50 basis points over Treasuries.
Holders can put the bonds back to the company at a price of 101 plus accrued interest in the event of a change of control, as defined by the bonds' indenture.
Olin, a Clayton, Mo.-based manufacturer of chemicals and firearms ammunition, plans to use the net proceeds of the offering, once they are released from escrow, to partially fund its pending $328 million all-cash purchase of K.A. Steel Chemicals Inc., a privately held Lemont, Ill.-based bleach manufacturer and distributor of caustic soda products. Closing on that deal is anticipated some time during the current third quarter.
| Issuer: | Olin Corp.
|
| Amount: | $200 million, increased from originally announced $175 million
|
| Maturity: | Aug. 15, 2022
|
| Securities: | Senior notes
|
| Bookrunners: | Bank of America Merrill Lynch, Citigroup Global Markets Inc. and Wells Fargo Securities, LLC
|
| Coupon: | 5½%
|
| Price: | Par
|
| Yield: | 5½%
|
| Spread: | 382 bps vs. 1¾% Treasury due May 15, 2022
|
| Call protection: | Non-callable except for make-whole call at Treasuries plus 50 bps
|
| Put option: | At 101 upon a change of control
|
| Trade date: | Aug. 9
|
| Settlement date: | Aug. 22
|
| Ratings: | Moody's: Ba1
|
| Standard & Poor's: B+
|
| Distribution: | SEC-registered offering
|
| Price talk: | 5½% to 5¾%
|
| Marketing: | Quick-to-market
|
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