Solenis sets roadshow for $2.4 billion equivalent two-part notes in dollars and euros

By Paul A. Harris

Portland, Ore., Sept. 7 – Solenis plans to market a $2.4 billion equivalent amount of high-yield notes in four tranches through the week of Sept. 20, according to market sources.

An investor call is set for 11:30 a.m. ET on Thursday.

The Rule 144A for life deal includes $1.4 billion equivalent of seven-year senior secured notes (B2) in tranches of dollar-denominated notes, initial guidance in the low 5% area, and euro-denominated notes, initial guidance in the low 4% area.

The deal also includes $1 billion equivalent of eight-year senior unsecured notes (Caa2) in tranches of dollar-denominated notes, initial guidance in the high 6% area to 7%, and euro-denominated notes, initial guidance in the high 5% area to 6%.

The deal is expected to price during the week of Sept. 20.

BofA Securities Inc. is the left bookrunner. Goldman Sachs & Co. LLC, Barclays, BMO Capital Markets Corp., Deutsche Bank Securities Inc., Morgan Stanley & Co. LLC, Nomura Securities International Inc., HSBC Securities (USA) Inc., ING Financial Markets LLC, Jefferies LLC, Macquarie Capital (USA) Inc. and RBC Capital Markets LLC are the joint lead bookrunners.

The notes in all four tranches become callable after three years at par plus 50% of their respective coupons. A special call provision allows the issuer to redeem 10% of the secured notes in both tranches annually at 103 during the non-call periods.

Proceeds plus an equity investment and new credit facilities will be used to help fund Platinum Equity's acquisition of Solenis UK International Ltd., comprising substantially all operations of the Solenis business, and its subsequent combination with existing Platinum Equity portfolio company Sigura Water.

The issuing entity will be Olympus Water US Holdings Corp.

Solenis, formerly Ashland Water Technologies, is a Wilmington, Del.-based manufacturer of specialty chemicals for the pulp, paper, oil and gas, chemical processing, mining, biorefining, power and municipal markets.

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