New Issue: Hexion prices $450 million eight-year notes at par to yield 7 7/8%

By Paul A. Harris

Portland, Ore., June 25 – Hexion Inc. priced a $450 million issue of eight-year senior notes (Ba3/B-) at par to yield 7 7/8% on Tuesday, according to market sources.

The yield printed at the tight end of yield talk in the 8% area and inside of the 8% to 8¼% early guidance.

Credit Suisse Securities (USA) LLC was the left bookrunner. Joint bookrunners were J.P. Morgan Securities LLC, Goldman Sachs & Co. LLC, Citigroup Global Markets Inc., Barclays, Deutsche Bank Securities Inc. and Blackstone.

The Columbus, Ohio-based specialty chemicals company is using the proceeds to repay its debtor-in-possession credit facilities and other distributions provided for under its plan of reorganization, as well as to repay fees and expenses related to its emergence from bankruptcy.

Issuer:	Hexion Inc.
Amount:	$450 million
Maturity:	July 15, 2027
Securities:	Senior notes
Left bookrunner:	Credit Suisse Securities (USA) LLC
Joint bookrunners:	J.P. Morgan Securities LLC, Goldman Sachs & Co. LLC, Citigroup Global Markets Inc., Barclays, Deutsche Bank Securities Inc. and Blackstone
Coupon:	7 7/8%
Price:	Par
Yield:	7 7/8%
Spread:	593 bps
First call:	July 15, 2022 at 103.938
Equity clawback:	40% at 107.875 until July 15, 2022
Trade date:	June 25
Settlement date:	July 1
Ratings:	Moody's: Ba3
	S&P: B-
Distribution:	Rule 144A and Regulation S
Price talk:	8% area
Marketing:	Roadshow

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