Ashland driving by with $450 million 10-year bullet, whisper is mid-3% area

By Paul A. Harris

Portland, Ore., Aug. 3 – Ashland LLC plans to price a $450 million offering of 10-year senior bullet notes (expected ratings Ba1/BB+) in a Tuesday drive-by trailing a conference call with investors, according to a syndicate source.

The notes will be guaranteed by Ashland Global Holdings Inc.

Initial guidance has the deal coming to yield in the mid-3% area.

Citigroup Global Markets Inc. is the left lead bookrunner. BofA Securities, Inc., Credit Agricole CIB, Mizuho Securities USA Inc., Scotia Capital (USA) Inc., Deutsche Bank Securities Inc. and J.P. Morgan Securities LLC are the joint bookrunners for the Rule 144A and Regulation S issue.

Fifth Third Securities Inc., PNC Capital Markets LLC, TD Securities (USA) LLC, U.S. Bancorp Investments Inc. and HSBC Securities (USA) Inc. are the senior co-managers. BNP Paribas Securities Corp., Goldman Sachs & Co. LLC, ING Financial Markets LLC, Santander Investment Securities Inc. and SMBC Nikko Securities America Inc. are the co-managers.

The notes are covered by a make-whole call at Treasuries plus 50 basis points until three months prior to maturity, at which time they become callable at par. They are otherwise non-callable.

The Covington, Ky.-based specialty chemical company plans to use the proceeds to redeem its 4¾% notes due 2022, with any remaining net proceeds to be used for general corporate purposes which may include working capital, capital expenditures and debt repayment.

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