New Issue: Celanese US prices $3 billion senior notes in three tranches

By Wendy Van Sickle

Columbus, Ohio, Aug. 10 – Celanese Corp. subsidiary Celanese US Holdings LLC priced $3 billion of fixed-rate senior notes (Baa3//BBB-) in three tranches on Thursday, according to an FWP filing with the Securities and Exchange Commission.

The company sold $1 billion of 6.35% five-year notes at 99.986 to yield 6.356%, or a spread over Treasuries of 215 basis points.

Celanese sold $1 billion 6.55% long seven-year notes at 99.95 to yield 6.561% with a spread over Treasuries of 240 bps.

Finally, Celanese priced $1 billion of 6.7% notes due 2033 at 99.992 to yield 6.703% and a spread over Treasuries of 260 bps.

BofA Securities Inc., HSBC Securities (USA) Inc., J.P. Morgan Securities LLC, Deutsche Bank Securities Inc., Citigroup Global Markets Inc., TD Securities (USA) LLC, U.S. Bancorp Investments, Inc. and PNC Capital Markets LLC are the bookrunners.

Proceeds are intended to fund the company’s tender offer to purchase for cash up to $1.75 billion of its outstanding 3.5% senior notes due 2024, 5.9% senior notes due 2024 and 6.05% notes due 2025, as well as repay outstanding debt under its three-year term loan credit agreement due 2025.

As of June 30, about $4.25 billion of notes related to the tender offer were outstanding and about $750 million remained outstanding under the credit agreement.

Celanese is a Dallas-based chemicals company.

Issuer:	Celanese US Holdings LLC
Guarantor:	Celanese Corp. and certain subsidiaries of the issuer
Amount:	$3 billion
Issue:	Senior notes
Bookrunners:	BofA Securities Inc., HSBC Securities (USA) Inc., J.P. Morgan Securities LLC, Deutsche Bank Securities Inc., Citigroup Global Markets Inc., TD Securities (USA) LLC, U.S. Bancorp Investments, Inc. and PNC Capital Markets LLC
Co-managers:	UniCredit Capital Markets LLC, MUFG, SMBC Nikko Securities America, Inc., Morgan Stanley & Co. LLC, Goldman Sachs & Co. LLC, Santander Investment Securities Inc. and Standard Chartered Bank
Trustee:	Computershare Trust Co., NA
Counsel to issuer:	Gibson, Dunn & Crutcher LLP
Counsel to underwriters:	Paul Hastings LLP
Pricing date:	Aug. 10
Settlement date:	Aug. 14
Ratings:	Moody’s: Baa3
	Fitch: BBB-
Distribution:	SEC registered
2028 notes
Amount:	$1 billion
Maturity:	Aug. 15, 2028
Coupon:	6.35%
Price:	99.986
Yield:	6.356%
Spread:	Treasuries plus 215 bps
Call:	Make-whole call at Treasuries 35 bps until Oct. 15, 2028, then a par call
Cusip:	15089QAW4
2030 notes
Amount:	$1 billion
Maturity:	Nov. 15, 2030
Coupon:	6.55%
Price:	99.95
Yield:	6.561%
Spread:	Treasuries plus 240 bps
Call:	Make-whole call at Treasuries 40 bps until Sept. 15, 2030, then a par call
Cusip:	15089QAX2
2033 notes
Amount:	$1 billion
Maturity:	Nov. 15, 2033
Coupon:	6.7%
Price:	99.992
Yield:	6.703%
Spread:	Treasuries plus 260 bps
Call:	Make-whole call at Treasuries 40 bps until Aug. 15, 2033, then a par call
Cusip:	15089QAY0

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.