Omnova to begin roadshow for $250 million eight-year deal on Monday

By Paul Deckelman

New York, Oct. 14 - Omnova Solutions Inc. will begin a roadshow this coming Monday for its previously announced $250 million offering of eight-year senior notes, high-yield primary market sources said on Thursday.

That bond deal is expected to price the following Monday, Oct. 25, the sources said.

Deutsche Bank Securities, Inc. will be the left-hand lead joint bookrunner for the offering, with Jefferies & Co. Inc. as the other joint bookrunner, while KeyBanc Capital Markets will be the deal's lead manager.

The bonds are being sold under Rule 144A with registration rights and will have four years of call protection

Omnova, a Fairlawn, Ohio-based maker of emulsion polymers, specialty chemicals and decorative and functional surfaces for commercial, industrial and residential end uses, plans to use the proceeds from the bonds and from a new $200 million term loan to fund its previously announced $300 million acquisition of French chemical company Eliokem International SAS, to repay or replace all amounts outstanding under its existing term loan and to pay related fees and expenses.

Besides the bond deal and the new term loan, Omnova has additionally said that it intends to extend and increase the size of its unused asset-based credit facility to $100 million and expects to have $40 million of cash at the closing of the Eliokem acquisition.

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