Omnova talks $250 million eight-year notes with 8% area yield

By Paul A. Harris

St. Louis, Oct. 21 - Omnova Solutions Inc. talked its $250 million offering of eight-year senior notes (B2/B) with an 8% area yield on Thursday, according to an informed source.

The books close at noon ET on Friday, and the notes are expected to price shortly thereafter.

Deutsche Bank Securities Inc. is 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.

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