Solenis/Olympus Water markets $325 million secured notes; initial talk high-7% to low-8% area

By Paul A. Harris

Portland, Ore., Aug. 15 – Solenis set an investor conference call for 11 a.m. ET on Tuesday for a $325 million offering of five-year senior secured notes (B2), according to market sources.

Initial guidance has the Rule 144A for life deal coming to yield in the high-7% to low-8% area, a high-yield portfolio manager said.

The notes are expected to price on Wednesday.

BofA Securities Inc. is the left bookrunner. Goldman Sachs & Co. LLC is the joint bookrunner.

The Rule 144A for life notes become callable after two years at par plus 50% of the coupon. A special call provision allows the issuer to redeem 10% of the notes annually at 103 during the non-call period.

The notes feature a 40% equity clawback during the non-call period and a 101% poison put.

Proceeds will be used to fund the acquisition of Clearon Corp., a specialty chemicals company based in South Charleston, W.Va., and to provide excess cash to prefund a potential earn-out payment expected in 2023.

The issuing entity will be Olympus Water US Holdings Corp. if the notes issue closes concurrently with the acquisition or Cheever Escrow Issuer if the completion of the acquisition is delayed until after the issue date.

Solenis is a Wilmington, Del.-based specialty chemicals manufacturer.

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