By Paul A. Harris
Portland, Ore., Oct. 27 – Kuwait’s Equate Petrochemical Co. KSCC priced $2.25 billion of senior notes (Baa2/BBB+) in two tranches on Thursday, according to a market source.
A $1 billion amount of 3% notes due March 3, 2022 price at a 195 basis points spread to mid-swaps, on top of final talk.
A $1.25 billion tranche of 4¼% notes due Nov. 3, 2026 priced at mid-swaps plus 270 bps, also atop final talk.
The deal played to $5.5 billion of demand, the source said.
The launch spreads come inside of revised spread talk.
As reported, the long five-year notes were talked in the mid-swaps plus 212.5 bps area after initial talk in the low-200 bps area.
The 10-year notes were talked in the mid-swaps plus 287.5 bps area, following initial talk of a spread in the high-200 bps to 300 bps.
Citigroup, HSBC, JPMorgan and NBK Capital were the global coordinators and joint bookrunners. Banca IMI, Mizuho Securities, MUFG and SMBC Nikko were also joint bookrunners.
Equate is 85% owned by Petrochemical Industries Co. and Dow Chemical and produces essential chemical compounds as the largest petrochemical complex in Kuwait.
| Issuer: | Equate Petrochemical Co. KSCC
|
| Amount: | $2.25 billion
|
| Securities: | Senior notes
|
| Bookrunners: | Citigroup Global Markets, HSBC, JPMorgan, NBK Capital, Banca IMI, Mizuho Securities, MUFG, SMBC Nikko
|
| Trade date: | Oct. 27
|
| Ratings: | Moody's: Baa2
|
| S&P: BBB+
|
|
|
| Tranche A
|
| Amount: | $1 billion
|
| Maturity: | March 3, 2022
|
| Coupon: | 3%
|
| Spread: | Mid-swaps plus 195 bps
|
| Price talk: | Mid-swaps plus 195 bps
|
|
|
| Tranche B
|
| Amount: | $1.25 billion
|
| Maturity: | Nov. 3, 2026
|
| Coupon: | 4¼%
|
| Spread: | Mid-swaps plus 270 bps
|
| Price talk: | Mid-swaps plus 270 bps
|
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