By Paul A. Harris
Portland, Ore., Sept. 21 – Solenis LLC priced $2.11 billion equivalent of high-yield notes in four tranches on Tuesday, according to market sources.
The deal priced as follows:
• $815 million of seven-year senior secured notes (B2/B-) priced at par to yield 4¼%, at the tight end of the 4¼% to 4 3/8% final talk, which was revised from the 4½% area. Initial guidance was in the low 5% area;
• €500 million of seven-year senior secured notes (B2/B-) priced at par to yield 3 7/8%, on top of final talk, which was revised from the 4% area. Initial guidance was in the low 4% area;
• $400 million of eight-year senior unsecured notes (Caa2/CCC+) priced at par to yield 6¼%, at the tight end of the 6¼% to 6 3/8% final talk, which was revised from the 6½% area. Initial guidance was in the high 6% to 7% area; and
• €265 million of eight-year senior unsecured notes (Caa2/CCC+) priced at par to yield 5 3/8%, on top of final talk, which was revised from the 5½% area. Initial guidance was in the high 5% to 6% area.
The unsecured notes’ size decreased from $1 billion equivalent, with proceeds shifted to the concurrent term loan.
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 issuer was 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.
| Issuer: | Olympus Water US Holdings Corp. (Solenis LLC)
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| Left bookrunner: | BofA Securities Inc.
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| Joint bookrunners: | 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
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| Trade date: | Sept. 21
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| Settlement date: | Oct. 1
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| Distribution: | Rule 144A and Regulation S
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| Marketing: | Roadshow
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| Dollar secured notes
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| Amount: | $815 million
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| Issue: | Secured notes
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| Maturity: | Oct. 1, 2028
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| Coupon: | 4¼%
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| Price: | Par
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| Yield: | 4¼%
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| Call protection: | Three years
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| Ratings: | Moody's: B2
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| S&P: B-
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| Price talk: | 4¼% to 4 3/8%, revised from 4½% area
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| Euro secured notes
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| Amount: | €500 million
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| Issue: | Secured notes
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| Maturity: | Oct. 1, 2029
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| Coupon: | 3 7/8%
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| Price: | Par
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| Yield: | 3 7/8%
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| Call protection: | Three years
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| Ratings: | Moody's: B2
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| S&P: B-
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| Price talk: | 3 7/8%, revised from 4% area
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|
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| Dollar unsecured notes
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| Amount: | $400 million
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| Issue: | Unsecured notes
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| Maturity: | Oct. 1, 2029
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| Coupon: | 6¼%
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| Price: | Par
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| Yield: | 6¼%
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| Call protection: | Three years
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| Ratings: | Moody's: Caa2
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| S&P: CCC+
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| Price talk: | 6¼% to 6 3/8%, revised from 6½% area
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|
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| Euro unsecured notes
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| Amount: | €265 million
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| Issue: | Unsecured notes
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| Maturity: | Oct. 1, 2029
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| Coupon: | 5 3/8%
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| Price: | Par
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| Yield: | 5 3/8%
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| Call protection: | Three years
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| Ratings: | Moody's: Caa2
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| S&P: CCC+
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| Price talk: | 5 3/8%, revised from 5½% area
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