Solenis tightens talk on $2.11 billion equivalent four-part notes offering; pricing Tuesday

By Paul A. Harris

Portland, Ore., Sept. 21 – Solenis tightened price talk in its $2.11 billion equivalent four-part offering of high-yield notes, a market source said on Tuesday.

The deal, slated to go on the block late Tuesday morning, is set as follows:

• $815 million of seven-year senior secured notes (B2/B-) with final talk of 4Ό% to 4 3/8%, revised from the 4½% area (initial guidance low 5% area);

• €500 million of seven-year senior secured notes (B2/B-) with final talk of 3 7/8%, revised from the 4% area (initial guidance low 4% area);

• $400 million of eight-year senior unsecured notes (Caa2/CCC+) with final talk of 6Ό% to 6 3/8%, revised from the 6½% area (initial guidance high 6% to 7% area); and

• €265 million of eight-year senior unsecured notes (Caa2/CCC+) with final talk of 5 3/8%, revised from the 5½% area (initial guidance high 5% to 6% area).

The unsecured notes’ size decreased from $1 billion equivalent, with proceeds shifted to the concurrent term loan.

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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