By Cristal Cody
Eureka Springs, Ark., Aug. 3 – Westlake Chemical Corp. priced $1.45 billion of 10- and 30-year senior notes (Baa3/BBB+/BBB) in a Rule 144A and Regulation S-eligible offering on Wednesday, according to a market source and a company news release.
The company sold $750 million of 3.6% 10-year notes and $700 million of 5% 30-year notes.
Deutsche Bank Securities Inc., Goldman Sachs & Co. and J.P. Morgan Securities LLC were the lead managers.
The notes are expected to be guaranteed on a senior basis by certain Westlake Chemical subsidiaries.
Other details of the issuance were not immediately available.
Westlake Chemical intends to use the proceeds, together with proceeds from other financing transactions and cash on hand, to finance the $2.3 billion acquisition of Axiall Corp., to prepay Axiall’s $250 million term loan and to pay related fees and expenses.
The manufacturer and supplier of petrochemicals, polymers and building products is based in Houston.
| Issuer: | Westlake Chemical Corp.
|
| Guarantors: | Certain Westlake Chemical subsidiaries
|
| Amount: | $1.45 billion
|
| Description: | Senior notes
|
| Bookrunners: | Deutsche Bank Securities Inc., Goldman Sachs & Co., J.P. Morgan Securities LLC
|
| Trade date: | Aug. 3
|
| Settlement date: | Aug. 10
|
| Ratings: | Moody’s: Baa3
|
| S&P: BBB+
|
| Fitch: BBB
|
| Distribution: | Rule 144A and Regulation S
|
|
|
| 10-year notes
|
| Amount: | $750 million
|
| Maturity: | 2026
|
| Coupon: | 3.6%
|
|
|
| 30-year notes
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| Amount: | $700 million
|
| Maturity: | 2046
|
| Coupon: | 5%
|
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