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Italmatch sets tranche sizes, price talk in €690 million five-year secured notes offering
By Paul A. Harris
Portland, Ore., Jan. 26 – Italmatch Chemicals SpA set tranche sizes and price talk in a €690 million two-part offering of five-year senior secured notes (B3/B/B), according to a market source.
The deal includes €390 million of floating-rate notes talked with a 550 basis points spread to Euribor, with no Euribor floor, at 93 to 94. Official spread talk comes on top of initial talk (early whisper was 575 bps). Price talk comes rich to early guidance of 92 to 93 (early whisper was 92).
The Italmatch offering also includes €300 million of fixed-rate notes talked at par to yield 10% to 10¼%. Initial talk was in the 10½% area. Early whisper on the fixed-rate notes was 11%.
The overall deal size decreased from €700 million.
The Rule 144A and Regulation S offering is expected to price on Thursday.
Joint global coordinator and joint physical bookrunner Goldman Sachs International will bill and deliver. BNP Paribas is also a joint global coordinator and joint physical bookrunner. Citigroup is a joint global coordinator and joint bookrunner. Credit Agricole CIB and UniCredit are joint bookrunners.
The Genoa, Italy-based chemical company expects to use the proceeds plus proceeds from its exchange notes and a capital contribution to redeem its existing notes, to repay amounts drawn under its revolver subject to completion of the acquisition of a stake in Italmatch by Dussur, the Saudi Arabian Industrial Investments Co., and to fund cash to the Italmatch balance sheet.
Dussur announced in a December press release that it would acquire a stake in Italmatch from Bain Capital Private Equity. The size of Dussur’s stake is expected to be less than 20%.
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