By Rebecca Melvin
New York, Oct. 5 – Braskem Netherlands Finance BV, a subsidiary of Braskem SA, priced $1.75 billion of senior notes (expected ratings: BBB-/BBB-) in five- and 10-year tranches on Thursday, according to a market source.
The $500 million of notes maturing Jan. 10, 2023 priced with a 3˝% coupon at 99.058 to yield 3.73%. That compared to price talk in the 4% area.
A $1.25 billion tranche of notes maturing Jan. 10, 2028 priced with a 4˝% coupon at 98.995 to yield 4.68%. That compared to talk in the 5% area.
Proceeds will be used to prepay short-term and long-term debt, to fund capital expenditures and for general corporate purposes.
Itau BBA, Morgan Stanley (billing and delivery), Santander, BNP Paribas, Credit Agricole CIB, SMBC Nikko and UBS were joint bookrunners of the Rule 144A and Regulation S notes.
Settlement is expected Oct. 10 with listing on the Singapore stock exchange.
Sao Paulo-based Braskem produces and distributes petrochemicals.
| Issuer: | Braskem Netherlands Finance BV
|
| Guarantor: | Braskem SA
|
| Amount: | $1.75 billion
|
| Description: | Senior unsecured notes
|
| Bookrunners: | Itau BBA, Morgan Stanley (billing and delivery), Santander, BNP Paribas, Credit Agricole CIB, SMBC Nikko and UBS
|
| Trade date: | Oct. 5
|
| Settlement date: | Oct. 10
|
| Ratings: | S&P: BBB-
|
| Fitch: BBB-
|
| Distribution: | Rule 144A and Regulation S
|
|
|
| Five-year notes
|
| Amount: | $500 million
|
| Maturity: | Jan. 10, 2023
|
| Coupon: | 3˝%
|
| Price: | 99.058
|
| Yield: | 3.73%
|
| Price talk: | In the 4% area
|
|
|
| 10-year notes
|
| Amount: | $1.25 billion
|
| Maturity: | Jan. 10, 2028
|
| Coupon: | 4˝%
|
| Price: | 98.995
|
| Yield: | 4.68%
|
| Price talk: | In the 5% area
|
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