New Issue: Omnova Solutions $165 million seven-year notes yield 11¼%

By Paul A. Harris

St. Louis, May 16 - Omnova Solutions Inc. sold $165 million of senior secured notes due June 1, 2010 (B2/BB) at par Friday to yield 11¼%, according to market sources.

Price talk was for a yield of 11%-11¼%.

Deutsche Bank Securities Inc. was the bookrunner for the Rule 144A deal.

The Fairlawn, Ohio specialty chemical company will use proceeds to repay its revolver and terminate its receivables sale program.

Issuer:	Omnova Solutions Inc.
Amount:	$165 million
Maturity:	June 1, 2010
Security description:	Senior secured notes
Bookrunner:	Deutsche Bank Securities
Coupon:	11¼%
Price:	Par
Yield:	11¼%
Spread:	828 basis points
Call features:	Callable on June 1, 2007 at 105.626, then at 102.813, declining to par on June 1, 2009 and thereafter
Equity clawback:	Until June 1, 2006 for 35% at 111.25
Settlement date:	May 23, 2003
Distribution:	Rule 144A
Ratings:	Moody's: B2
	Standard & Poor's: BB
	Fitch: BB
Price talk:	11%-11¼%

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