Omnova shops $165 million seven-year deal, roadshow starts Friday

By Paul Deckelman

New York, May 8 - Omnova Solutions Inc. said Thursday that it would sell $165 million of new senior secured notes in a Rule 144A offering.

A roadshow for the deal was expected to begin Friday, with pricing anticipated on May 14.

High yield market sources said that the notes would be seven-year securities, non-callable for the first four years after issue.

They heard that Deutsche Bank Securities Inc. would lead manage the deal. A market source opined that there probably would be co-managers but none had emerged as yet.

The Fairlawn, Ohio-based specialty chemical company said the offering would be contingent upon the concurrent closing of a new $100 million three-year asset-based bank credit facility.

The company said that it would use the proceeds from the note offering to repay outstanding amounts under its existing revolving credit facility, to terminate its receivables sale program and to pay related fees and expenses.

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