New Issue: Omnova prices $250 million eight-year notes at par to yield 7 7/8%

By Paul A. Harris

St. Louis, Oct. 22 - Omnova Solutions Inc. priced a $250 million issue of eight-year senior notes (B2/B/) at par to yield 7 7/8% on Friday, according to an informed source.

The yield printed at the tight end of the 8% area price talk.

Deutsche Bank Securities Inc. was the left lead bookrunner. Jefferies & Co. was a joint bookrunner. KeyBanc Capital Markets was the lead manager.

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. Proceeds also will be used to help repay or replace all amounts outstanding under an existing term loan and to pay related fees and expenses.

Issuer:	Omnova Solutions Inc.
Amount:	$250 million
Maturity:	Nov. 1, 2018
Securities:	Senior notes
Lead bookrunner:	Deutsche Bank Securities Inc.
Joint bookrunner:	Jefferies & Co.
Lead manager:	KeyBanc Capital Markets (lead)
Coupon:	7 7/8%
Price:	Par
Yield:	7 7/8%
Spread:	575 bps
Call features:	Make-whole call at Treasuries plus 50 bps until Nov. 1, 2014, then callable at 103.938, 101.969, par on and after Nov. 1, 2016
Equity clawback:	35% at 107.875 until Nov. 1, 2014
Trade date:	Oct. 22
Settlement date:	Nov. 3
Ratings:	Moody's: B2
	Standard & Poor's: B
Distribution:	Rule 144A with registration rights and Regulation S
Price talk:	8% area
Marketing:	Roadshow

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