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Solenis launches upsized $2.38 billion equivalent long five-year secured notes in two parts
By Abigail W. Adams
Portland, Me., May 24 – Olympus Water US Holding Corp. (Solenis) launched its upsized $2.375 billion equivalent two-tranche offering of long five-year senior secured notes (B3/B-) to back the acquisition of Diversey Holdings Ltd. with reconfigured tranche sizes and tightened price talk, according to a market source.
Books close at 10:15 a.m. ET on Wednesday with pricing thereafter.
The dollar-denominated tranche was downsized to $1.7 billion with price talk tightened to a yield of 9 5/8% to 9¾%.
The tranche size was previously upsized to $1.825 billion from $1.625 billion, with price talk in the 9¾% area.
The euro-denominated tranche was upsized to $675 million equivalent with price talk also tightened to a yield of 9 5/8% to 9¾%.
The euro-denominated tranche was previously upsized to $550 million equivalent from $500 million equivalent, with price talk in the 9¾% area.
Early guidance for both tranches was for a yield in the high 8% area.
BofA Securities Inc. (lead left), Goldman Sachs & Co. LLC, BMO Capital Markets Corp., HSBC Securities (USA) Inc., Deutsche Bank Securities Inc., Citigroup Global Markets Inc., Macquarie Group Ltd. and Nomura Securities International Inc. are bookrunners for the Rule 144A and Regulation S for life offering.
The notes are non-callable for two years with the first call at par plus 50% of the coupon; 10% of the principal amount is subject to a special redemption at 103 during the non-call period.
There is a 101 poison put and an equity clawback of 40% during the non-call period.
Proceeds, in addition to a new term loan facility and approximately $2 billion of equity, will be used to finance the acquisition of Diversey and refinance Diversey’s existing debt.
Solenis, a Platinum Equity portfolio company, is a Wilmington, Del.-based manufacturer of specialty chemicals used in water-intensive industries.
Diversey is a Fort Mill, S.C.-based provider of hygiene, infection prevention and cleaning solutions.
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