New Issue: Vertellus sells upsized $345 million 9 3/8% five-year notes at par

By Paul A. Harris

St. Louis, Sept. 27 - Vertellus Specialties Inc. priced an upsized $345 million issue of five-year senior secured notes (B1/B/) at par to yield 9 3/8% on Monday, according to an informed source.

The yield printed in the middle of the 9¼% to 9½% price talk.

Credit Suisse Securities and Jefferies & Co. were the joint bookrunners for the issue, which was upsized from $325 million.

Proceeds will be used to refinance the company's first-lien and second-lien term loans.

Vertellus is an Indianapolis-based manufacturer of chemicals for the agricultural, nutritional, pharmaceutical, personal care and performance material markets.

Issuer:	Vertellus Specialties Inc.
Amount:	$345 million, increased from $325 million
Maturity:	Oct. 1, 2015
Securities:	Senior secured notes
Bookrunners:	Credit Suisse Securities, Jefferies & Co.
Co-manager:	PNC Capital Markets
Coupon:	9 3/8%
Price:	Par
Yield:	9 3/8%
Spread:	809.5 bps
Call features:	Make-whole at Treasuries plus 50 bps until April 1, 2013, then 104.688 until Oct. 1, 2013, 104.688 until Oct. 1, 2014, callable thereafter at par
Equity clawback:	35% at 109.375 until April 1, 2013
Change-of-control put:	101%
Ratings:	Moody's: B1
	Standard & Poor's: B
Distribution:	Rule 144A and Regulation S for life
Price talk:	9¼% to 9½%
Marketing:	Roadshow

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