Solvay plans dollar-denominated bonds to help fund Cytec acquisition

New York, Nov. 27 – Solvay SA said it plans an offering of dollar-denominated senior bonds to help finance its acquisition of Cytec Industries Inc.

The company announced the intended financing after pricing a euro-denominated debt sale made up of €2.25 billion of senior bonds in three tranches and €1 billion of hybrid bonds in two tranches.

Solvay did not specify the size of the dollar financing.

In addition to the debt, there will also be a €1.5 billion rights offering.

Solvay announced in July that it had agreed to acquire Cytec for $5.5 billion in cash.

The euro financing included €1 billion of floating-rate bonds due 2017 with a coupon of Euribor plus 82 basis points, €750 million of 1.625% bonds due 2022, €500 million of 2.75% bonds due December 2027, €500 million of 5.118% hybrid bonds with a first call in June 2021 and €500 million of 5.869% hybrid bonds with a first call in June 2024.

Solvay’s senior debt is rated Baa2 by Moody’s Investors Service and BBB- by Standard & Poor’s. Moody’s rated the hybrids at Ba1.

Solvay is a Brussels-based chemical manufacturer. Cytec is Woodland Park, N.J. maker of composite materials and mining chemicals.

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