Cytec ups tender cap to $200 million, sets prices for 6%, 8.95% notes

By Toni Weeks

San Luis Obispo, Calif., March 12 - Cytec Industries Inc. announced the pricing terms in its previously announced tender offers for its $249.56 million of 6% notes due 2015 and $249.4 million of 8.95% notes due 2017, according to a company news release.

The company is offering to buy back up to $125 million of the 6% notes and an uncapped amount of the 8.95% notes. When the offer was announced, the company had planned to accept tenders for $50 million of the 8.95% notes.

The aggregate amount of notes the company will accept for purchase is $200 million, with the 6% notes having a higher priority level than the 8.95% notes. Cytec reserves the right to increase the maximum principal amount of notes to be accepted.

The total purchase price for each $1,000 principal amount of notes was determined at 9:30 a.m. ET on March 12 by reference to a fixed spread over the yield based on the bid-side price of a reference Treasury.

The purchase price for the 6% notes is $1,123.77, which is 75 basis points over the 0.252% yield based on the 0.25% Treasury note due Jan. 31, 2015. The price for the 8.95% notes is $1,242.67, which is 135 bps over the 0.862% yield based on the 0.875% Treasury note due Jan. 31, 2018.

The prices each include a $30.00 early tender premium for each note tendered by the early tender date, 5 p.m. ET on March 11. Holders who tender their notes after then will receive $1,093.77 and $1,242.67, respectively.

The company will also pay accrued interest up to but excluding the settlement date, which is expected to be March 26.

The offers expire at 11:59 p.m. ET on March 25.

The offers are subject to the completion of Cytec's issuance of at least $400 million of senior notes due 2023. They are not contingent on the tender of any minimum principal amount of notes. The company priced $400 million of 3.5% 10-year notes on Feb. 26.

The dealer managers are Citigroup Global Markets Inc. (800 558-3745 or 212-723-6106), RBS Securities Inc. (877 297-9832) or Wells Fargo Securities, LLC (866 309-6316). The depositary and information agent is Global Bondholder Services Corp. (866 937-2200).

Based in Woodland Park, N.J., Cytec is a specialty material and chemical company.

© 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.