By Paul A. Harris
St. Louis, Aug. 20 - Sabic Innovative Plastics Holding BV priced a downsized $1.5 billion issue of eight-year senior unsecured notes (B1/B+) at par to yield 9½% on Monday, according to an informed source.
The yield was printed on top of price talk that had been lowered from earlier guidance, which had the notes pricing at a discount to yield 10¼%.
The preponderance of the issue was placed with institutional investors in the Middle East, according to an informed source, who added that there were also investors in the deal from Europe and the United States. The source said that there was also some private money in the transaction.
Citigroup, ABN Amro, GE Capital, HSBC and JP Morgan were joint bookrunners for the Rule 144A for life notes. Proposed registration rights were withdrawn from the issue.
The bond deal initially came to market as a $2.765 billion equivalent offering of eight-year notes in tranches of $1.95 billion and €590 million. The proposed euro-denominated notes have been withdrawn.
Proceeds will be used to help fund the acquisition of General Electric's plastics business by Saudi Basic Industries Corp. (Sabic) for $11.6 billion, including the assumption of liabilities.
| Issuer: | Sabic Innovative Plastics Holding BV
|
| Amount: | $1.5 billion
|
| Maturity: | Aug. 15, 2015
|
| Security description: | Senior unsecured notes
|
| Bookrunners: | Citigroup, ABN Amro, GE Capital, HSBC, JP Morgan
|
| Coupon: | 9½%
|
| Price: | Par
|
| Yield: | 9½%
|
| Spread: | 486 bps
|
| Call features: | Make-whole at Treasuries plus 50 bps until Aug. 15, 2011, then callable at 104.75, 103.167, par on and after Aug. 15, 2013
|
| Equity clawback: | Until Aug. 15, 2010 for 35% at 109.50
|
| Change-of-control put: | 101.0
|
| Trade date: | Aug. 20
|
| Settlement date: | Aug. 31
|
| Ratings: | Moody's: B1
|
| Standard & Poor's: B+
|
| Distribution: | Rule 144A for life (proposed registration rights withdrawn)
|
| Price talk: | 9½% (tightened from 10¼%)
|
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