Published on 9/11/2014 in the Prospect News High Yield Daily.
New Issue: W.R. Grace prices $1 billion senior notes in two bullet tranches
By Paul A. Harris
Portland, Ore., Sept. 11 – W.R. Grace & Co.-Conn. priced $1 billion of non-callable senior notes (Ba3/BB+) in two tranches on Thursday, according to a market source.
The notes in both tranches priced on top of price talk and in line with earlier guidance.
The deal included $700 million of seven-year notes that priced at par to yield 5 1/8% and $300 million of 10-year notes that priced at par to yield 5 5/8%.
Goldman Sachs & Co. was the left bookrunner. Deutsche Bank Securities Inc. and BofA Merrill Lynch were the joint bookrunners.
The Columbia, Md.-based specialty chemicals company plans to use the proceeds to terminate obligations under the deferred payment agreement with the Personal Injury Trust for about $632 million, as well as to partially fund the settlement of the warrant issued to the Personal Injury Trust. In addition proceeds will be used to repay amounts outstanding under the revolver and for other general corporate purposes.
| Issuer: | W.R. Grace & Co.-Conn.
|
| Amount: | $1 billion
|
| Securities: | Non-callable senior notes
|
| Left bookrunner: | Goldman Sachs & Co
|
| Joint bookrunners: | Deutsche Bank Securities Inc., BofA Merrill Lynch
|
| Co-managers: | Citigroup Global Markets Inc., Commerzbank, HSBC, KeyBanc Capital Markets, PNC Capital Markets, Scotia Capital, SMBC Nikko, TD Securities, UniCredit
|
| Trade date: | Sept. 11
|
| Settlement date: | Sept. 16
|
| Ratings: | Moody's: Ba3
|
| Standard & Poor's: BB+
|
| Distribution: | Rule 144A and Regulation S for life
|
| Marketing: | Roadshow
|
|
|
| Seven-year notes
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| Amount: | $700 million
|
| Maturity: | Oct. 1, 2021
|
| Coupon: | 5 1/8%
|
| Price: | Par
|
| Yield: | 5 1/8%
|
| Price talk: | 5 1/8% area
|
|
|
| 10-year notes
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| Amount: | $300 million
|
| Maturity: | Oct. 1, 2024
|
| Coupon: | 5 5/8%
|
| Price: | Par
|
| Yield: | 5 5/8%
|
| Price talk: | 5 5/8% area
|
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