By Paul A. Harris
Portland, Ore., Jan. 22 – Angus Chemical Co. priced a $225 million issue of eight-year senior notes (Caa1/B/) at par to yield 8¾% on Thursday, according to a syndicate source.
The yield printed at the tight end of the 8¾% to 9% yield talk.
Morgan Stanley & Co. LLC, J.P. Morgan Securities LLC and Deutsche Bank Securities Inc. are the joint bookrunners.
Proceeds will be used to help fund the buyout of the company by Golden Gate Capital from the Dow Chemical Co.
The issuing entity is Aruba Investments, Inc., a holding company that Golden Gate Capital will use to acquire Angus Chemical from Dow Chemical Co.
Angus is a Buffalo Grove, Ill.-based manufacturer and distributor of nitroalkanes and their derivatives.
| Issuer: | Aruba Investments, Inc.
|
| Amount: | $225 million
|
| Maturity: | Feb. 15, 2023
|
| Securities: | Senior notes
|
| Bookrunners: | Morgan Stanley & Co. LLC, J.P. Morgan Securities LLC, Deutsche Bank Securities Inc.
|
| Coupon: | 8¾%
|
| Price: | Par
|
| Yield: | 8¾%
|
| Spread: | 700 bps
|
| First call: | Feb. 15, 2018 at 106.563
|
| Equity clawback: | 35% at 108.75 until Feb. 15, 2018
|
| Change-of-control put: | 101%
|
| Trade date: | Jan. 22
|
| Settlement date: | Feb. 2
|
| Ratings: | Moody's: Caa1
|
| Standard & Poor's: B
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 8¾% to 9%
|
| Marketing: | Roadshow
|
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