By Paul A. Harris
Portland, Ore., Jan. 29 - Orion Engineered Carbons Finance priced an upsized $425 million issue of 9¼% 6.5-year PIK toggle notes (Caa1/CCC+/) at 99 to yield 9.46% on Tuesday, according to a market source.
The deal was upsized from $390 million.
The yield came slightly below the tight end of the 9½% to 9¾% yield talk.
Goldman Sachs was the physical bookrunner. Barclays, JPMorgan and UBS were the joint bookrunners.
Proceeds will be used to fund a distribution to shareholders.
The notes will be guaranteed by Kinove Luxembourg Holdings.
Orion Engineered Carbons is a Frankfurt-based producer of carbon black.
| Issuer: | Orion Engineered Carbons Finance
|
| Guarantor: | Kinove Luxembourg Holdings
|
| Amount: | $425 million, increased from $390 million
|
| Maturity: | Aug. 1, 2019
|
| Securities: | Senior PIK toggle notes
|
| Physical bookrunner: | Goldman Sachs & Co.
|
| Joint bookrunners: | Barclays, J.P. Morgan Securities LLC, UBS Investment Bank
|
| Coupon: | 9¼%
|
| Price: | 99
|
| Yield: | 9.46%
|
| Spread: | 820 bps
|
| Call protection: | One year
|
| Trade date: | Jan. 29
|
| Settlement date: | Feb. 1
|
| Ratings: | Moody's: Caa1
|
| Standard & Poor's: CCC+
|
| Distribution: | Rule 144A for life
|
| Yield talk: | 9½% to 9¾%
|
| Marketing: | Roadshow
|
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