By Paul A. Harris
St. Louis, May 16 - BCI US Finance Corp./Borden Nova Scotia Finance (Borden Chemical Inc.) priced a downsized and restructured $150 million issue of second-priority senior secured floating-rate notes due July 15, 2010 at 98.846 on Monday, according to a syndicate source.
The notes will pay a coupon that floats at three-month Libor plus 550 basis points.
Price talk was Libor plus 575 basis points, having been upwardly revised from Libor plus 475 to 500 basis points.
Credit Suisse First Boston, JP Morgan and Morgan Stanley were joint bookrunners for the Rule 144A/Regulation S with registration rights offering.
The Columbus, Ohio-based chemical company will use proceeds to fund the acquisition of Bakelite AG.
The issue was downsized from $250 million, with $100 million shifted to the company's term loan. Also, a planned fixed-rate tranche was eliminated from the final transaction.
Upon completion of the merger of Borden Chemical and Bakelite with the Resolution companies, the company will be merged into Hexion Specialty Chemicals.
Borden Chemical is a producer of binding and bonding resins, performance adhesives, and the building-block chemical formaldehyde for various wood and industrial markets.
| Issuer: | BCI US Finance Corp/Borden Nova Scotia Finance (Borden Chemical Inc.)
|
| Amount: | $150 million (downsized from $250 million)
|
| Maturity: | July 15, 2010
|
| Security description: | Second-priority senior secured floating-rate notes due July 15, 2010
|
| Bookrunners: | Credit Suisse First Boston, JP Morgan, Morgan Stanley
|
| Coupon: | Three-month Libor plus 550 basis points
|
| Price: | 98.846
|
| Call features: | Callable after July 15, 2006 at 102, 101, par on or after July 15, 2008
|
| Equity clawback: | Until July 15, 2006 for up to 35% at par plus applicable coupon
|
| Trade date: | May 16
|
| Settlement date: | May 20
|
| Ratings: | Moody's: B3
|
| Standard & Poor's: B-
|
| Price talk: | Libor plus 575 basis points (revised from Libor plus 475-500 bps)
|
| New structure: | Planned fixed-rate tranche withdrawn
|
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
