By Paul A. Harris
Portland, Ore., Dec. 7 – Kraton Corp. priced a $400 million issue of five-year senior notes (existing ratings B2/BB-) at par to yield 4¼% in a Monday drive-by, according to market sources.
The yield printed at the tight end of the 4¼% to 4½% yield talk. Initial guidance was 4½% to 4¾%.
J.P. Morgan Securities LLC was at the left of a syndicate of bookrunners that also included BofA Securities Inc., BMO Capital Markets Corp. and Deutsche Bank Securities Inc.
The notes were sold via subsidiaries Kraton Polymers LLC and Kraton Polymers Capital Corp.
The Houston-based producer of styrenic block copolymers and specialty polymers plans to use the proceeds, together with cash on hand or borrowings under its asset-based revolver, to redeem of all of its outstanding 7% senior notes due 2025.
| Issuers: | Kraton Polymers LLC and Kraton Polymers Capital Corp.
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| Amount: | $400 million
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| Maturity: | Dec. 15, 2025
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| Securities: | Senior notes
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| Bookrunners: | J.P. Morgan Securities LLC, BofA Securities Inc., BMO Capital Markets Corp. and Deutsche Bank Securities Inc.
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| Coupon: | 4¼%
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| Price: | Par
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| Yield: | 4¼%
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| Spread: | 386 bps
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| Trade date: | Dec. 7
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| Existing ratings: | Moody's: B2
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| S&P: BB-
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| Distribution: | Rule 144A and Regulation S for life
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| Price talk: | 4¼% to 4½%
|
| Marketing: | Drive-by
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