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Olin downsizes to $1.22 billion, talk on two-part notes offer sees upward revision; pricing Friday
By Paul A. Harris
Portland, Ore., Sept. 25 – Olin Corp. downsized its two-part offering of senior notes (Ba1/BB+) to $1.22 billion from $1.5 billion and made a huge boost to the price talk, market sources said on Friday.
A tranche of eight-year notes is now talked to yield 9¾% to 10%, upwardly revised from previous talk in the 6½% area. The eight-year notes become callable after five years at par plus 25% of the coupon.
A tranche of 10-year notes is now talked to yield 10% to 10¼%, upwardly revised from previous talk in the 6¾% area. The 10-year notes become callable after five years at par plus 50% of the coupon.
Tranche sizes remain to be determined.
Books close at 1 p.m. ET on Friday, and the Rule 144A and Regulation S with registration rights deal is also set to price Friday.
As a result of the downsizing of the bond offering the company intends to raise the difference in proceeds by means of term loan debt and a draw upon its revolver, a source said.
In addition to the downsizing, the deal has also undergone changes to the asset sales-, debt limitations- and restricted payments covenants, as well as amendments to the liens language, a trader said.
J.P. Morgan Securities LLC, Wells Fargo Securities LLC, Barclays, Goldman Sachs & Co., BofA Merrill Lynch, Citigroup Global Markets Inc. and PNC Capital Markets are the joint bookrunners.
MUFG, SMBC Nikko, Mizuho Securities, Santander, Scotia Capital and TD Securities are the co-managers.
The issuing entity will be Blue Cube Spinco Inc.
Proceeds will be used to fund the acquisition of Dow Chemical Co.’s chlorine businesses in a transaction valued at $4.8 billion.
Olin is a Clayton, Mo.-based manufacturer of ammunition, chlorine and sodium hydroxide.
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