Chemtura to market $450 million eight-year notes on Wednesday

By Paul A. Harris

St. Louis, Aug. 10 - Chemtura Corp. will present its $450 million offering of eight-year senior notes to investors in New York on Wednesday, according to a market source.

There may be subsequent investor meetings, the source added.

Citigroup Global Markets Inc., Bank of America Merrill Lynch, Barclays Capital Inc., Wells Fargo Securities and Goldman Sachs & Co. are joint bookrunners for the Rule 144A and Regulation S with registration rights offering.

The notes come with four years of call protection, and will feature a Treasuries plus 50 bps make-whole provision covering the non-call period.

The deal also features a three-year 35% equity clawback, and a 101% poison put.

Proceeds will be used to repay and replace the company's existing debtor-in-possession facility, repay other debt, and to make payments including transaction fees and expenses.

The proceeds will be deposited into an escrow account, together with cash provided by Chemtura sufficient to fund the redemption of the notes and accrued interest up to, but excluding, the date of redemption. The escrow account will remain in place until the escrow conditions are satisfied or a special mandatory redemption of the notes is required. While in escrow, amounts will be pledged for the benefit of the noteholders.

If the escrow conditions are not fulfilled within 60 days of closing, the notes will be redeemed at 101% of the issuer price, plus accrued interest.

Chemtura is a Middlebury, Conn.-based manufacturer and seller of specialty chemicals and polymer products that filed for bankruptcy on March 18, 2009 in the U.S. Bankruptcy Court for the Southern District of New York. Its Chapter 11 case number is 09-11233.

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